Energy Vault Holdings Inc Earnings Call and Investor Day

May 9, 2024

Welcome to energy vaults inaugural Investor and Analyst day, Thanks for being here with US today those here in New York as well as those joining us virtually the full investor and analyst day presentation first quarter financial results press release, and an abridged earnings presentation are all available now on our Investor website.

I'll be referring to these materials throughout the day.

A replay of this event will also be made available later today on the Investor Relations page of our website.

Tired he of the Investor and Analyst day is being recorded and broadcast virtually please note that energy vaults first quarter 2024 earnings release as well as today's Investor and Analyst day presentation will contain forward looking statements that are subject to risks and uncertainties.

These forward looking statements are only estimates and may differ materially from the actual future events or results due to a variety of factors, we caution everyone to be guided in their analysis of energy vault by referring to our SEC filings for a list of factors that may cause our results to differ from those anticipated in any forward looking statements.

We undertake no obligation to publicly update or revise any forward looking statements except as required by law. In addition, please note that we will be presenting and discussing certain non-GAAP information. Please refer to the safe Harbor disclaimer and non-GAAP financial measures presented in our earnings release for more details, including a reconciliation.

Liaison to comparable GAAP measures.

History has shown us the true progress is the undertaking of the few.

Made by those that reached towards the biggest challenges and tackle the unknown with conviction.

And by the people that take on questions, others deem impossible unlocking opportunity with their answers.

Today, together, we will unlock our volt and share with you all that it contains within it is our journey one that's taking us to all four corners of the globe.

Our energy storage technology is making clean power flourish transforming it from a minor contributor to a major element of power grids reliably powering homes offices businesses communities in a way that's unique safe sustainable and indigenous.

What others see as the future, we're making happen right now delivering projects that can be seen in real time building infrastructure and licensing our technology around the world within our vault is our hardware with its short long an ultra long duration capabilities as well as our cutting edge hybrid enabled software.

Can seamlessly orchestrate and optimize the most ambitious operational needs. Our unparalleled expertise is in the vault too with our dedicated global R&D and engineering teams always looking to the future.

Dressing the big challenges in answering our toughest questions ones that affect us all today and for generations to come.

Our journey is only just beginning already it's accelerating the momentum of clean power is unstoppable.

Our storage is the essential driver for it happening better faster and quicker than anyone thought possible. We are in the right place at the right time, and we've opened the vault take a look and see what's inside.

Okay.

I'm delighted to welcome and to welcome to the stage Robert <unk> Chairman of the Board and Chief Executive Officer.

Okay. Good morning afternoon, and evening to everybody I. Appreciate all of you that have joined US here in New York. This morning. It is great to be back I also want to welcome everybody that dialing in we have a few hundred people actually that have dialed in for this event. So welcome.

To all of you.

Great to be back here were just over two years ago, We took the company public on Valentine's day in 2022.

Amazing the last two years and what it's been and I think in terms of timing and as I think about the timing of us having this dialogue and this concept of unlocking the vault.

And what we've done in the last two years.

And different solutions all over the world four corners of the world different technologies. It is the right time to have this discussion and why is that.

This is now a discussion not about what will come or what needs to be proven or what we are going to do.

It's building off a base of what we've already done from turning over a gigawatt hour already in the United States for example, and battery projects getting our technology up and operating for example in China.

It will be a very data driven discussion today as you would expect this is an investor day.

There'll be a lot of transparency, we have a new CFO and that'll be introducing here in a minute that's going to be covering most of that but it will also be a customer driven discussion meaning.

This is a discussion that is going to come from also testimonials from our customers that are operating the systems that we built and delivered.

So in terms of us having a dialogue I think with investors know about what we've done in the last two years, but then very importantly, what we're going to be doing in the next few years as an investment thesis, it's quite a quite a strong compelling message we feel that we've put together today and with what we're doing in the energy storage space and transforming.

Investor and analyst day on stage I'd like to welcome Bernie Colson, who's going to take us through the Safe Harbor language.

Bernie Colson: Good morning, welcome to energy vault inaugural Investor Analyst day, Thanks for being here with US today those here in New York as well as those joining us virtually the full investor and analyst day presentation first quarter financial results press release, and an abridged earnings presentation are all available now on our Investor website will be rich.

How we deploy solutions, how we solve customer problems from a mentality and mindset.

I hope you'll agree with me that we're really innovating in ways no. One has ever done in energy storage and at a speed and velocity that has not been seen.

On the agenda here, we've got a I think a great portfolio of things to discuss I'm going to spend some time upfront talking about some of the state of the business, we are going to get into some numbers here right away.

<unk> to these materials throughout the day.

Bernie Colson: A replay of this event will also be made available later today on the Investor Relations page of our website.

Bernie Colson: The entirety of the Investor and Analyst day is being recorded and broadcast virtually please note that energy vaults first quarter 2024 earnings release as well as today's Investor and Analyst day presentation will contain forward looking statements that are subject to risks and uncertainties. These.

And go over some of the things we are announcing new today. So part of this day is not only about getting into what we've done getting into what we're going to be doing over the next few years. So we will be sharing some of that guidance, but today. We're also announcing new customers new products and regions and also sharing a little bit about our business model.

Bernie Colson: These forward looking statements are only estimates and may differ materially from the actual future events or results due to a variety of factors, we caution everyone to be guided in their analysis of energy vault by referring to our SEC filings for a list of factors that may cause our results to differ from those anticipated in any forward looking statements.

So opening up.

The kimono a little bit on how some of these things are going to flow over the next few years, we've got a great and deep set of discussions around our product portfolio. So I think that's fundamental and important.

It's a it's a great.

Bernie Colson: We undertake no obligation to publicly update or revise any forward looking statements except as required by law. In addition, please note that we will be presenting and discussing certain non-GAAP information. Please refer to the safe Harbor disclaimer and non-GAAP financial measures presented in our earnings release for more details, including a reconciliation.

I think time for us to be talking about that technology, given what's happening in the market uniquely just in the last two weeks I've spent 10 of those days going around the world into China also in Saudi Arabia that I'll talk about for the World Economic Forum, and then coming back here actually flew back over the pole. So it was quite a round trip I'm going.

Bernie Colson: Asian to comparable GAAP measures.

Sure some of those perspectives because there are some transformational things happening in energy transformational in terms of the amount of just the pure terawatt demand that we're seeing in that the world has seen and a lot of questions of how we're going to meet that demand.

Bernie Colson: History has shown us that true progress is the undertaking of the field.

Bernie Colson: Made by those that reached towards the biggest challenges and tackle the unknown with conviction fueled.

Absolutely.

What would be undisputed and not dispute at all is energy storage is going to play an important role.

Bernie Colson: Fueled by the people that take on questions others deem impossible.

We're gonna be finishing with Michael <unk>, our new CFO.

Bernie Colson: Knocking opportunity with their answers today.

Bernie Colson: Today, together, we will unlock our volt and share with you all that it contains within it is our journey one that's taking us to all four corners of the globe.

What is this your I think fourth week or third week, Michael on the job fourth week on the job.

Very excited to have Michael here, and having him covering the bulk of what we're going to be going over financially. Both in terms of the results, we announced yesterday that hopefully many of you have seen as well as importantly, some guidance as we look and scanning today over the next 18 months. So it's another I think unique time, given where progressed here in 2024.

Bernie Colson: Our energy storage technology is making clean power flourish transforming it from a minor contributor to a major element of power grids reliably powering homes offices businesses communities in a way that's unique safe sustainable and indigenous what others see as the future, we're making happen right.

We have pretty good visibility as you would expect in terms of the rest of this year, but as well as what we have underway into 2025. So Michael is going to be covering that we will insert some question and answer periods within this and a lot of very exciting content and videos directly from our customers.

Bernie Colson: Now delivering projects that can be seen in real time building infrastructure and licensing our technology around the world within our vault is our hardware.

Bernie Colson: It's short long, an ultra long duration capabilities as well as our cutting edge hybrid enabled software that can seamlessly orchestrate and optimize the most ambitious operational needs. Our unparalleled expertise is in the vault too with our dedicated global R&D and engineering teams always looking to the future.

That's how we lead that's what drives our company at the end of the day, we can say and you can believe what you want from what comes from our mouths, but at the end of the day, it's the customer that decides who is best.

They're choosing us that feels great and we're going to share with you what that's going to look like over the next few years.

Bernie Colson: Addressing the big challenges in answering our toughest questions ones that affect us all today and for generations to come.

Okay.

Start with numbers and let's first start by looking back over the last two years.

Bernie Colson: Our journey is only just beginning already it's accelerating the momentum of clean power is unstoppable.

We build almost half a billion of revenue over the last two years.

Bernie Colson: And our storage is the essential driver for it happening better faster and quicker than anyone thought possible.

I think in energy storage is obviously, a newer space from a technology perspective, but as an energy storage company. There are some that have been around for 10 to 15 years pretty unprecedented and what we've done here in the first 24 months of revenue.

Bernie Colson: We're in the right place at the right time, and we've opened the volt take a look and see what's inside.

And with a gross margin profile that is quite unusual in this space as well so to have a <unk>.

Blended double digit gross margin of combination of businesses, where we've been able to monetize for example, our gravity energy storage and a long duration market that is still evolving.

Bernie Colson: Okay.

Bernie Colson: I'm delighted to welcome and to welcome to the stage Robert <unk> Chairman of the Board and Chief Executive Officer.

And still can be described as Nathan.

I think that's going to be changing more quickly than we thought I will share with you why in a little bit but also built and built a very large funnel of <unk> is here, our chief product and commercial officer.

Robert: Okay. Good morning afternoon, and evening to everybody I. Appreciate all of you that have joined us here.

Robert: In New York. This morning, it is great to be back I also want to welcome everybody that dialing in we have a few hundred people actually that have dialed in for this event. So welcome to all of you.

If you start from the left side.

Almost 10 gigawatt hours of things since either awarded or short listed.

Very interestingly over 60% of that it's awarded in Shortlisted comes from either existing customers, where we've already turned things over or strategic partners investors. So obviously a high competence there we're going to talk about that a little later con.

Robert: Great to be back here were just over two years ago, We took the company public on Valentine's day in 2022.

Robert: Amazing in the last two years and what it's been and I think in terms of timing and as I think about the timing about having this dialogue and this concept of unlocking the vault.

Contracted of the two gigawatt hours some of which we've seen in some of the revenue already.

But a full gigawatt hour now in operation and you're going to be hearing from our customers in that regard, but very importantly in our first two years all the projects that we've delivered on time on budget safe.

Robert: And what we've done in the last two years and different solutions all over the world four corners of the world different technologies. It is the right time to have this discussion and why is that.

And again no no surprise the priority that is today, especially with some of the incidents that have occurred.

Robert: This is now a discussion not about what will come or what needs to be proven or what we are going to do it.

Some of the technologies, but with the team we built not a surprise to me that we're managing that very well and all with quality akshay level is here and going to be talking a little bit about our software and our execution.

Robert: Building off a base of what we've already done from turning over a gigawatt hour already in the United States for example, and battery projects getting our technology up and operating for example in China. It will be a very data driven discussion today as you would expect this is an investor day, So I think there'll be a lot of.

He is driving for the company.

And then I think very importantly for investors.

Strong cash position, we have managed that and continue to manage that well, it's very important because that gives us the optionality and the flexibility as a company to do things like investing in our R&D centers and new customer centers that youre going to learn more about today.

Robert: Currency, we have a new CFO and that'll be introducing here in a minute that's going to be covering most of that but it will also be a customer driven discussion.

Robert: Meaning this is a discussion that is going to come from also testimonials from our customers that are operating the systems that we built and delivered.

To make some strategic investments as we've done in key strategic partners and just keep the working capital going through a business. That's been a tough last two years between the interest rate environment, what's happening on the geopolitical arena. So we have to continue to plan for the unexpected and continue to manage as the stewards of investor in <unk>.

Robert: So in terms of us having a dialogue I think with investors know about what we've done in the last two years, but then very importantly, what we're going to be doing in the next few years as an investment thesis.

Robert: It's quite a quite a strong compelling message, we feel that we've put together today and with what we're doing in the energy storage space and transforming how we deploy solutions, how we solve customer problems from a mentality and mindset.

A holder money.

No debt on the on the balance sheet and I think importantly, we have not nor do we have plans to do any dilutive type of financing.

And I think if you look at a company of our size and scale in our growth that's something quite unique something we're proud of but always looking now as we're growing more and more for continuing to look at ways to get growth capital into the company with some of the business models that we're going to be sharing with you today.

Robert: I Hope you will agree with me that we're really innovating in ways no. One has ever done in energy storage and at a speed and velocity that has not been seen.

Robert: On the agenda here, we've got a I think a great portfolio of things to discuss I'm going to spend some time upfront talking about some of the state of the business, we are going to get into some numbers here right away.

If you look on the right side of that page across our gravity or battery and hydrogen portfolio very interestingly monetizing and the business model in different ways gravity through licenses and in some some of the biggest markets in the world like China. We are building out and have built out over a gigawatt hour of lithium ion.

Robert: And go over some of the things we are announcing new today. So part of this day is not only about getting into what we've done getting into what we're going to be doing over the next few years. So we will be sharing some of that guidance, but today. We're also announcing new customers new products, new regions and also sharing a little bit about our business model.

Batteries and then another business model with the green hydrogen the largest one in the U S announced with the largest California utility we own that project, it's a turn and a half year tolling agreement.

Robert: Opening up.

Different technologies different business models, all managed in a progression that we feel very good about.

Robert: The kimono a little bit on how some of these things are going to flow over the next few years, we've got a great and deep set of discussions around our product portfolio. So I think that's fundamental and important.

And with our customer set as you read there that is really some of the largest players in their respective either states or in their category like IPP. So China. If you follow us closely which I think most of you either on the call are here in the room do we had some big announcements over the weekend.

Robert: It's a it's a great.

Robert: Think time for us to be talking about that technology, given what's happening in the market uniquely just in the last two weeks I spent 10 of those days going around the world into China also in Saudi Arabia that I'll talk about for the World Economic Forum, and then coming back here actually flew back over the pole. So it was quite a round trip I'm going to share.

<unk> operation and testing successful of the system, that's charging and discharging our first gravity system and Rudolph in China. It was grid interconnected last year in December mechanically complete a little earlier in the Q3, so everything's progressed, despite two COVID-19 shutdowns in Shanghai.

Robert: Some of those perspectives because there are some transformational things happening in energy transformational in terms of the amount of just the pure terawatt demand that we're seeing in that the world has seen and a lot of questions of how we're going to meet that demand.

Progressed in a very positive way with that and up to and including this past weekend I was just there the week before and Shanghai I'll share a little bit more from that trip.

Speaker Change: Absolutely I think what would be undisputed and not dispute at all is energy storage is going to play an important role.

We also announced our China tightening and extension of another seven and a half years of our license agreement, which will bring future royalties.

Speaker Change: We're gonna be finishing with Michael beer, our new CFO.

On the left hand side, some again top customers wellhead, one of the largest and oldest companies in California of.

Speaker Change: I think what is this your I think fourth week or third week, Michael on the job fourth week on the job.

Speaker Change: Very excited to have Michael here, and having him covering the bulk of what we're going to be going over financially. Both in terms of the results, we announced yesterday that hopefully many of you have seen as well as importantly, some guidance as we look and scanning today over the next 18 months. So it's another I think unique time, given where progressed here in 2024.

<unk> picker plants, but now going with hybridization that came online in the summer to very critical period for those of you that know, California. It's a it's a tough market, especially if you're building things right in the middle of a neighborhood, which is where this was.

So not a small achievement there at an important time for wellhead.

Speaker Change: We have pretty good visibility as you would expect in terms of the rest of this year, but as well as what we have underway into 2025 for Michael is going to be covering that.

Nevada energy the largest energy company, our largest utility in the state of Nevada completed a project in four months 440 megawatt hour never been done in that timeframe before to get them up and energized before the end of the year big accomplishment of the team putting that together and the partners we used.

Speaker Change: We'll insert some question and answer periods.

Speaker Change: Within this and a lot of very exciting content and videos directly from our customers.

Speaker Change: How we lead that's what drives our company at the end of the day, we can say and you can believe what you want from what comes from our mouths, but at the end of the day, it's the customer that decides who is best.

Jupiter power of the largest IPP in ERCOT Blackrock back.

Battery project brought online an energized just January last quarter.

And now bringing brought to final completion here this quarter.

Speaker Change: They're choosing us that feels great and we're going to share with you what that's going to look like over the next few years.

So a lot a lot happening that culminated in the Pacific gas and electric announcement, we made about a year and a half ago and now building and delivering that project. This summer.

Speaker Change: Okay, we're going to start with the numbers and let's first start by looking back over the last two years.

It was a great combination if you look at the first 12 months, we had demonstrating.

Speaker Change: We built almost half a billion of revenue over the last two years.

Demonstrating our energy solution approach of addressing an ultra long duration need that Pacific gas and electric thought could only be solved.

Speaker Change: I think in energy storage is obviously, a newer space from a technology perspective, but as an energy storage company. There are some that have been around for 10 to 15 years.

With gas.

Because of the nature of what was a requirement they bring in diesel Gen. Every year, we proposed a sustainable solution. We designed it we architected. It we brought the best technology to the market.

Speaker Change: Pretty unprecedented and what we've done here in the first 24 months of revenue and with a gross margin profile that is quite unusual in this space as well so to have a blended double digit gross margin of combination of businesses, where we've been able to monetize for example, our gravity energy storage and a long duration.

To do it and now we're deploying it again another first and we'll be one of the first one is operational and it really solidifies our leadership globally in long duration technology to have these technologies not only announced not only being built the gravity system. The operating in China and now that's ultra long duration micro grid will be.

Speaker Change: Market that is still evolving and.

Speaker Change: Still can be described as Nathan.

Speaker Change: I think thats going to be changing more quickly than we thought I will share with you why in a little bit, but also built and built a very large funnel mark <unk> is here, our chief product and commercial officer.

Adding this year all first very excited and that everything I've, just described and spending some time on it really starts with leadership and people.

Speaker Change: That if you start from the left side.

I'm talking about this upfront it's not just about 10 people that you see on this chart is the 180 strong of our employees that's not a large number by the way it shows the flexibility of our business model.

Speaker Change: Almost 10 gigawatt hours of things since either awarded or Shortlisted.

Speaker Change: Very interestingly over 60% of that that's awarded and Shortlisted comes from either existing customers, where we've already turned things over or strategic partners investors. So obviously, a high confidence that we're going to talk about that a little later contracted of the two gigawatt hours some of which we've seen in some of the revenue already.

Also the not only the Capex light, but the resource light way, we deal with technology development, but are very resource to work with our customers and developing projects as well as executing those projects safely and on time, we've done it. So it's not something that I'm standing here, saying, we're going to do we have been doing that it is the strength in <unk>.

Speaker Change: But a full gigawatt hour now in operation and Youre going to be hearing from our customers in that regard, but very importantly in our first two years all of the projects that we've delivered on time on budget safe.

Core value of this company to be known about delivery and execution and the other thing. If you look at this team from a leadership perspective.

Speaker Change: And again no surprise the priority that is today, especially with some of the incidents that have occurred.

We are very global this is not a U S centric team.

Speaker Change: Some of the technologies, but with the team we built not a surprise to me that we're managing that very well and all with quality akshay level is here and we're going to be talking a little bit about our software and our execution that that he's driving for the company.

It all everyone, you see or hear except andreyev majority, our CTO who's Swiss by birth, but living now in California.

And he is hosting a technology collaborations session with also some customers, hence he could not be here in person.

Speaker Change: And then I think very importantly for investors.

Speaker Change: Strong cash position, we have managed that and continue to manage that well, it's very important because that gives us the optionality and the flexibility as a company to do things like investing in our R&D centers and new customer centers that youre going to learn more about today.

<unk> is here our head of HR.

They are in their back from Turkey. Originally worked in Switzerland from the health care area of Pfizer Amgen out in California, We were lucky to grabber, when we were out there and avoided to move but again.

Global multinational functionally excellent and the people function.

Speaker Change: To make some strategic investments as we've done in key strategic partners and just keep the working capital going through a business. That's been a tough last two years between the interest rate environment, what's happening on the geopolitical arena. So we have to continue to plan for the unexpected and continue to manage as stewards of investor and.

And it's been a great partner as we built this company very quickly Laurence Alexanders here you heard from him a little bit earlier based out of the UK and handles all of our marketing and PR activity.

Michael Beer, we announced a few weeks ago.

And as here there in the back of the room, our new CFO and we will be taking to realize the financial areas, but a lot of experience no stranger to high growth and public companies, Josh Mcfarland based out of Germany is also here, our chief legal officer of the company and just a wealth of experience dealing globally and all of the parts.

Speaker Change: Their money.

Speaker Change: No debt on the on the balance sheet and I think importantly, we have not nor do we have plans to do any dilutive type of financing.

Speaker Change: And I think if you look at a company of our size and scale in our growth that's something quite unique something we're proud of but always looking now as we're growing more and more for continuing to look at ways to get growth capital into the company with some of the business models that we're going to be sharing with you today. If you look on the right side of that page across our gravity.

The World, where we're strong and building and growing Chris Weezy here also in the front end.

Chris I worked with for over 20 years across four companies.

So we know each other that for the good and the bad I guess you'd say.

Speaker Change: Our battery and hydrogen portfolio, very interestingly monetizing and the business model in different ways gravity through licenses and in some some of the biggest markets in the world like China. We are building out and have built out over a gigawatt hour of lithium ion batteries and then another business model with the green hydrogen.

That makes it work.

Very well and very lucky to have him pull them out of retirement to come and help us out. He is in Texas, there, where we are announcing a new <unk>.

Solution Center for energy, that's already been built in collaboration with Enel Green power, Mark <unk>, our chief product and commercial officer and Italian by birth has worked all over the year all over the world, including seven years in China. After the Kyoto protocol looking at putting in place new carbon pricing models.

Speaker Change: Just one in the U S announced with the largest California utility we own that project, it's a turn and a half year tolling agreement so different technologies different business models, all managed in a progression that we feel very good about.

Speaker Change: With our customer set as you read there that is really some of the largest players in their respective either states or in their category like IPP. So China. If you follow us closely which I think most of you either on the call are here in the room do we had some big announcements over the weekend, the first operation and testing successor.

There so just a wealth of experience Akshay Ludwig.

From India originally.

We have more experience I think from an integration perspective than most in the world.

Having spent a lot of time at Green spent the energy and integrating over 100 projects in 12 countries.

There is a reason we've been able to commission. These systems in the last 12 months, bringing them up safely, bringing them up at the quality customers expect and it's not just about developing good technology. It starts with people and experience those customers that were on that prior stage do not give orders to new customers.

Speaker Change: All of the systems, that's charging and discharging our first gravity system and Rudolph in China. It was grid interconnected last year in December mechanically complete a little earlier in the Q3, so everything has progressed.

Speaker Change: Fight to Covid shutdowns in Shanghai.

Speaker Change: Progressed in a very positive way with that and up to and including this past weekend I was just there the week before and Shanghai I'll share a little bit more from that trip.

The present risks of them public utilities do not take risk companies like wellhead tried and true very conservative company. They do not take risk they do bet on people and they do bet on some of the best people in the industry.

Speaker Change: We also announced with China, attaining an extension of another seven and a half years of our license agreement, which will bring future royalties on the left hand side. Some again top customers wellhead, one of the largest and oldest companies in California of <unk>.

Feel very good about this team, finishing here, Kevin <unk>, who we cross paths at Danaher company. Many of you in the financial community and the corporate development side.

Speaker Change: Yes, Peter plants, but now going with hybridization that came online in the summer to very critical period for those of you that know, California. It's a it's a tough market, especially if you're building things right in the middle of a neighborhood, which is where this was.

In assisting us on development initiatives for the company.

Yeah.

Okay.

Starting off here to talk a little bit about what are we announcing today thats new there is a lot new.

Speaker Change: So not a small achievement there at.

Speaker Change: An important time for wellhead.

I think with energy volt, you can always expect the unexpected.

Speaker Change: Nevada energy the largest energy company, our largest utility in the state of Nevada completed a project in four months 440 megawatt hour never been done in that timeframe before to get them up and energized before the end of the year big accomplishment of the team putting that together and the partners we used.

There's a lot that goes on behind the scenes, we get done with a very efficient team.

With China, you saw that we announced the first operation of the system and the testing of the system. The discharging of the system for the first time, but we also announced an extension of that license agreement and that's fundamental youll remember that they paid and prepaid $50 million upfront to have that right to deploy the technology of <unk>.

Speaker Change: Jupiter power of the largest IPP in ERCOT Blackrock back.

Speaker Change: Another battery project brought online an energized just January last quarter.

What's the most exciting part for US is getting two deployments at volume. So having this first system up and running now but already they had started six months ago. A second system that was already out of the ground. Obviously shows a lot of confidence from them, but already announced also three seven gigawatt hours of projects and gravity.

Speaker Change: And now bringing brought to final completion here this quarter.

Speaker Change: So a lot a lot happening that culminated in the Pacific gas and electric announcement, we made about a year and a half ago and now building and delivering that project. This summer it.

Speaker Change: It was a great combination if you look at the first 12 months, we had demonstrating.

I mean, that's a number that is not announced by any other long duration storage technology, showing the flexibility of the technology that the mandate in China four hours they are using that system for four hours.

Speaker Change: Demonstrating our energy solution approach of addressing an ultra long duration need that Pacific gas and electric thought could only be solved.

Speaker Change: With gas.

Speaker Change: Because of the nature of what was requirement they bring in diesel Gen. Every year, we proposed a sustainable solution. We designed it we architected. It we brought the best technology to the market.

So.

Tremendous in terms of the confidence in building that out that is a long technical life asset. That's part of the reason they are deploying it initially for the poor hours.

Long duration will come in China as well, but.

Speaker Change: To do it and now we're deploying it again another first and we'll be one of the first one is operational and it really solidifies our leadership globally in long duration technology.

I don't think we could have chosen a better place given it's the largest energy storage market in the world Shortly China will be deploying and has been at a pace of renewables greater than the rest of the world combined.

Speaker Change: To have these technologies, not only announced not only being built the gravity system. The operating in China and now this ultra long duration micro grid will be operating this year. All first very excited and that everything I've just described and spending some time on it really starts with leadership and people.

And that's not a light statement with a mandate of 20% of storage at power times for what's going to probably become six hours.

Those are big numbers, you can do the math on that you've seen the numbers on China. There is a reason we went there to get the technology developed in a way that positions us well and a lot of confidence I hope it gives the investor community. The fact that when I was there 10 days ago shining a doubling of the time of the license agreement is.

Speaker Change: Talking about this upfront it's not just about 10 people that you see on this chart is the 180 strong of our employees that's not a large number by the way it shows the flexibility of our business model.

Round, our core <unk> technology there.

Speaker Change: And also the not only the Capex light, but the resource light way, we deal with technology development, but are very resource to work with our customers and developing projects as well as executing those projects safely and on time.

So not a lot of companies doing that I think in China. These days, we've worked very well with our partner China tightening the other thing to mention and we announced already is another license agreement for gravity in South Africa, and that's not just South Africa. That's the city region. So that includes 16 member states.

Speaker Change: We've done it so it's not something that I'm standing here, saying, we're going to do we have been doing that it is a strength and core value of this company to be known about delivery and execution and the other thing. If you look at this team from a leadership perspective, we are very global this is not a U S centric team.

We're excited about the potential there.

Al mentioned with one of the largest public will the largest publicly traded EPC in South Africa W. Bho, the Companys called Castle itself, which is a partnership that was created to build out the technology, what's not on here is aqua power. So this is public already but.

Speaker Change: It all everyone you see or hear accept Andre pedretti, our CTO, who switch by birth, but living now in California.

Speaker Change: And he is hosting a technology collaborations session with also some customers hence he cannot be here in person.

<unk> power, which is a 35 billion plus.

Desalination plant player one of the largest in the world. They are also one of the largest EPC is backed by the public investment fund in Saudi Arabia, They did a competition of <unk>.

Speaker Change: <unk> is here our head of HR.

Speaker Change: They are in the back from Turkey. Originally worked in Switzerland from the health care area of Pfizer Amgen out in California, We were lucky to grabber, when we were out there and avoided to move but again.

Many different companies for long duration energy storage.

To look at helping the needs in particular in South Africa with projects and energy storage to combined with renewables and we were one of the two companies selected.

Speaker Change: Global multinational functionally excellent and the people function.

Speaker Change: And it's been a great partner as we built this company very quickly Laurence Alexanders here you heard from him a little bit earlier basically to the UK and handles all of our marketing and PR activity.

So that was released I believe in March by Aqua power directly and.

And we are moving on that partnership and now looking at locations not just in Africa with them. So very excited about that given what that brings.

Speaker Change: Michael Beer, we announced a few weeks ago.

Michael Beer: And as here there in the back of the room, our new CFO and we'll be taking through a lot of the financial areas, but a lot of experience no stranger to high growth and public companies.

And then very Excitingly just to move down the page to the left we announced this morning.

The entry into Australia, and an entry into what it is not just our country, but a continent I think one of the most important growth markets for energy storage in the world. They are looking at some fascinating things in that continent, including building out massive solar collectors that sun looking at building out sub sea.

Speaker Change: Shrink borrowers based out of Germany.

Speaker Change: Also here, our chief legal officer of the company and just a wealth of experience dealing globally and all of the parts of the world, where we're strong and building and growing Chris Weezy here also in the front.

Speaker Change: Chris I worked with for over 20 years across four companies.

D C cables to go to places like Singapore for example, or into southeast Asia to power.

Chris Weezy: So we know each other that for the good and bad I guess, you say and that makes it work.

Some of the largest cities in the world.

Chris Weezy: Well and and very lucky to have him pull them out of retirement to come and help us out. He is in Texas, there, where we are announcing a new <unk>.

But also a very strong utility in IPP environment in and of itself.

A lot of company.

Companies Theyre like one of our investment partners, our Korea zinc.

Chris Weezy: Solution Center for energy, that's already been built in collaboration with Enel Green power, Mark <unk>, our chief product and commercial officer and Italian by birth has worked all over the year all over the world, including seven years in China. After the Kyoto protocol looking at putting in place new carbon pricing models.

Big strategies, there to make green hydrogen to make green hydrogen with the Sun you need long duration storage to drive electrolysis, where essentially splitting water, making green hydrogen so that's going to be very important but to have a market entry, where we have what we announced this morning with <unk>, which is.

Based in Southeast Asia, but has an IPP and operations in Australia. It's one of the owners of one of the largest solar plant the new England solar plant in Australia 720 megawatts. So this 400 megawatt hour that we announced this morning with <unk>.

Chris Weezy: There so just a wealth of experience Akshay Ludwig.

Speaker Change: From India originally.

Speaker Change: We have more experience I think from an integration perspective than most in the world.

Speaker Change: Having spent a lot of time at Green spent the energy and integrating over 100 projects in 12 countries.

Is gonna be coupling to that to that solar development for storage. So very excited there is actually two projects. That's a part of that 400 megawatt hour, we will be getting started on that the second half of this year and having a deployed through 2025.

Speaker Change: There is a reason we've been able to commission. These systems in the last 12 months, bringing them up safely, bringing them up at the quality customers expect and it's not just about developing good technology. It starts with people and experience those customers that were on that prior stage do not give orders to new customers.

Another very large project. We developed it's listed here is and will be the largest battery project in the world develop there in Australia working on that and you'll be hearing more about that project, but suffice to say.

Speaker Change: That present risks of them public utilities do not take risk companies like wellhead tried and true very conservative company. They do not take risk they do bet on people and they do bet on some of the best people in the industry.

We have other things going on in here in Australia, as well in our and our very near term pipeline and funnel, but a lot going on in a country that we've always represented as a strategic growth priority for US you will remember that we appointed our first non U S. Based board member last quarter, Stephanie <unk>. She is the CEO of horizon.

Speaker Change: Feel very good about this team, finishing here, Kevin <unk>, who we cross paths at Danaher company. Many of you in the financial community and the corporate development side.

Speaker Change: In assisting us on development initiatives for the company.

Power.

So there was no coincidence there in terms of the timing as we have been developing in the Australian market since even back to the IPO recall that Korea zinc invested $50 million in the company in January just before the IPO, So Korea zinc based in obviously in Korea, but.

Speaker Change: Okay, starting off here to talk a little bit about what are we announcing today thats new there is a lot new.

Speaker Change: I think with energy volt, you can always expect the unexpected.

Speaker Change: There's a lot that goes on behind the scenes, we get done with a very efficient team.

Speaker Change: With China, you saw that we announced the first operation of the system and the testing of the system. The discharging of the system for the first time, but we also announced an extension of that license agreement and that's fundamental youll remember that they paid and prepaid $50 million upfront to have that right to deploy the technology of <unk>.

They're the largest nonferrous metals producer in the world. So that's not only think Thats silver that's led soft metal called India, which is a rare earth metal so all of that core or operations in Australia.

And they have.

Publicly stated global aspirations, there around green hydrogen and the development of that and being one of the largest.

Speaker Change: What's the most exciting part for US is getting two deployments at volume. So having this first system up and running now but already they had started six months ago. A second system that was already out of the ground. Obviously shows a lot of confidence from them, but already announced also three seven gigawatt hours of projects and gravity.

Net exporters from Australia into Southeast Asia into Korea, with that and very excited to have them as a strategic partner and supporting what their plans are they want to have the first 100% green.

<unk> production facility.

Really I can't speak enough about them in there.

Speaker Change: I mean, that's a number that is not announced by any other long duration storage technology, showing the flexibility of the technology that the mandate in China four hours they are using that system for four hours.

And not only setting goals, but putting wood behind the arrow with investment.

And and build out so with their subsidiary or energy they acquired over nine Gigawatts of wind and solar projects. So this is all publicly announced in the last 18 months.

Speaker Change: So just tremendous in terms of the confidence in building that out that is a long technical life asset. That's part of the reason they are deploying it initially for the poor hours.

So they are moving and developing and real excited about that partnership.

On the right side, there are some of the new portfolio of things that were announcing.

Speaker Change: Long duration will come in China as well, but.

And if you look at those pictures.

Speaker Change: I don't think we could have chosen a better place given it's the largest energy storage market in the world Shortly China will be deploying and has been at a pace of renewables greater than the rest of the world combined.

And the development of what's behind that that were going to share in some detail today, we're announcing many new applications of our gravity.

That those applications are focused on first of all economics, so really achieving the lowest level is cost over time as you know gravity is not new it's actually the law.

Speaker Change: And that's not a light statement with a mandate of 20% of storage at power times for what's going to probably become six hours.

Speaker Change: Those are big numbers, you can do the math on that you've seen the numbers on China. There is a reason we went there to get the technology developed in a way that positions us well and a lot of confidence I hope it gives the investor community. The fact that when I was there 10 days ago shining a doubling of the time of the license agreement around.

In some aspects.

And something that's the basis of what today is about 95% of all energy storage, which are pumped hydroelectric dams.

So we are leveraging those applications continuing to innovate you're going to hear from some of our innovation leaders on this today youll see their EV zero Amy why some of these things are also expanding our total addressable market. So this will be new were very excited today to be announcing a new strategic partnership with Skidmore Owings them.

Speaker Change: Our core <unk> technology there.

Speaker Change: So not a lot of companies doing that I think in China. These days, we've worked very well with our partner China tightening the other thing dimension and we announced already is another license agreement for gravity in South Africa, and that's not just South Africa. The aesthetic region. So that includes 16 member states.

Merrell.

Because they are a large office here in New York for the people in the room, you may know them. So they're one of the most renowned engineering and architectural firms Bill.

Speaker Change: Very excited about the potential there al mentioned with one of the largest public will the largest publicly traded EPC in South Africa W. Bho, the companys called Gesell itself, which is a partnership that was created to build out the technology whats not on here is aqua power. So.

Bill Baker is here he will be up on stage with me today.

He is a part of.

With the lead designer and architect around the Birch Cleveland the largest building in the world 820 meters.

There are going to be many large superstructures built many many over the next 10 2030 years, we can do it very efficiently now, but most importantly, we are going to be mandated and it will be required to look at things like carbon payback on these buildings and we've been innovating around integrating energy storage in particular.

Speaker Change: As public already but.

Speaker Change: <unk> power, which is a 35 billion plus a desalination plant player one of the largest in the world. They are also one of the largest EPC is backed by the public investment fund and Saudi Arabia.

Speaker Change: <unk> did a competition of 20 different companies for long duration energy storage.

Gravity energy storage in the design of superstructures.

Speaker Change: To look at helping the knee and in particular in South Africa with projects and energy storage to combined with renewables and we were one of the two companies selected.

And Paul buildings, and so very excited to share that it does introduce a whole new addressable market for us that I think from a financial or analyst perspective would not have been included in how you've been thinking about.

Speaker Change: So that was released I believe in March by Aqua power directly and we are moving on that partnership and now looking at locations not just in Africa with them. So very excited about that given what that brings.

Some of the things that are addressable to us I think one of the hopefully the confidence as we've earned is that.

We are no stranger to taking technology and applying it to solve either customer problems or environmental problems and a very strong way. This is another example of that we're also going to have Dr. Jose Android Thats been working with energy vaults since the beginning.

Speaker Change: And then very Excitingly just to move down the page to the left we announced this morning.

Speaker Change: Yeah.

Speaker Change: The entry into Australia, and an entry into what it is not just our country, but a continent I think one of the most important growth markets for energy storage in the world, They're looking at some fascinating things in that continent, including building out massive solar collectors that sun looking at building out subsea <unk>.

The chair of mechanical and civil engineering at Caltech, which probably has one of the most world renowned seismic studies or in the world. So.

We're going to be talking about and sharing a little bit about what we're doing on that technology side and what that means in terms of how we're thinking about the evolution of the company and the evolution of the gravity technology.

Speaker Change: Holes to go to places like Singapore for example, or into South East Asia to power.

And then finally, we're going to be talking about some other projects that are known I think to the community in terms of the PGE project with Calistoga that is one that we are keeping on our balance sheet and have a turn and a half year tolling agreement.

Speaker Change: Some of the largest cities in the world, but also a very strong utility in IPP environment in and of itself a lot of.

Speaker Change: Companies Theyre like one of our investment partners, our Korea zinc.

Speaker Change: Big strategies, there to make green hydrogen to make green hydrogen with the Sun you need long duration storage to drive electrolysis, where essentially splitting water, making green hydrogen so that's going to be very important but to have a market entry, where we have what we announced this morning with <unk>, which is.

Texas, We also acquired a 57 megawatt interconnect. That's another project, we are going to be owning keeping on our balance sheet. We are and we'll be doing project financing. So from a just a cash perspective, there is pretty attractive models out there to project finance. These given all of these projects are low double digit unlevered.

Speaker Change: Based in South East Asia that has an IPP and operations in Australia. It's one of the owners of one of the largest solar plant the new England solar plant in Australia 720 megawatts. So this 400 megawatt hour that we announced this morning with <unk>.

<unk>.

We're going to talk a little bit more about this market and how we see it evolving but we.

We see a very attractive space here for attractive assets to own them, we don't have to own them for their life. There's obviously a lot of companies, where we can flip those out too for cashes needed, but they are assets and a part of our business model that we will be continuing to evolve as we want to become as a public company much more predictable abated and our cash flows.

Speaker Change: It's going to be coupling to that to that solar development for storage. So very excited there was actually two projects. That's a part of that 400 megawatt hour, we will be getting started on that the second half of this year and having a deployed through 2025.

As our revenues go every year.

One of the things you've seen with US is the nature of being a young company and in a new growth space and.

Speaker Change: Another very large project, we developed it's listed here.

Speaker Change: Is and will be the largest battery project in the world developed.

I don't want apologize for this but we have lumpy cash flows and lumpy type of revenue, it's a nature of being in a new growth area I am personally no stranger to it from 33 years working across both public companies some of the largest and new startup and innovative companies that are growing fast, but I think an incumbent upon us as we do our.

Speaker Change: Develop there in Australia, working on that and you'll be hearing more about that project, but suffice to say.

Speaker Change: We have other things going on in here in Australia, as well in our and our very near term pipeline and funnel, but a lot going on in a country that we've always represented as a strategic growth priority for US you will remember that we appointed our first non U S. Based board member last quarter, Stephanie <unk>. She is the CEO of horizon.

Planning to look at our business models look at the leverage of our team today look at how we spend our capex and our opex and putting in place something that is going to be a very strong business model for shareholders.

Speaker Change: Power and so there was no coincidence there in terms of the timing as we have been developing in the Australian market since even back to the IPO recall that Korea zinc invested $50 million in the company in January just before the IPO, So Korea zinc based in obviously in Korea, but.

And excited to share a little bit of more about that with you today and then finally.

And we have an R&D center that we've been building out our customer solution Center. That's a part of the initial collaborations with Enel Green power in Texas, We acquired the end interconnect from them. There we have a research and development collaboration agreement with them that initially started with a project we're going to turnover.

Speaker Change: They are the largest nonferrous metals producer in the world. So that's not only think thats silver that's led soft metal called India, which is a rare earth metal so all of that core or operations in Australia.

And al has a lot of global aspirations are in 33 countries Enel Green power.

In addition, they want to see a lot of our newer technologies proven out at a commercial scale and so this isn't just about one application of gravity, but as youre going to hear it's about some of these new applications of gravity for example, taken advantage of slopes that exist.

Speaker Change: And they have.

Speaker Change: <unk> stated global aspirations, there around green hydrogen the development of that and being one of the largest.

Speaker Change: Net exporters from Australia into Southeast Asia into Korea, with that and very excited to have them as a strategic partner and supporting what their plans are they want to have the first 100%.

And there are many many in each country. There are thousands of places where instead of building a structure and that cost to build a structure like an AVX. We can leverage existing terrain leverage for example, our same technology with our composite blocks or as youre going to learn today, even with water and a modular pumped hydro solution, which is.

Speaker Change: Greens zinc production facility.

Speaker Change: It really I can't speak enough about them in there.

Speaker Change: And not only setting goals, but putting wood behind the arrow with investment.

Speaker Change: And build out so with their subsidiary arc energy they acquired over nine Gigawatts of wind and solar projects. So this is all publicly announced in the last 18 months.

But we received the award from Aqua power for.

That achieves economics that have not been achieved and long duration or projected.

And that's because we're limiting that construction cost and leveraging some of the terrain and so a lot of those new technologies are going to be built out in this solution center. It's underway. It's happening. This year, we will have technologies shown and demonstrated within this year and some of these new things we're going to learn about today. So very excited this will.

Speaker Change: So they are moving and developing and real excited about that partnership.

Speaker Change: On the right side, there are some of the new portfolio of things that were announcing.

Speaker Change: And if you look at those pictures.

Speaker Change: And the development of what's behind that that were going to share in some detail today, we're announcing many new applications of our gravity.

Consume I think a good chunk of even some of the product in the portfolio discussion that we're going to have with some of the leaders at <unk>.

Speaker Change: That those applications are focused on first of all economics, so really achieving the lowest level ice cost over time as you know gravity is not new it's the law.

And we're going to sprinkle in.

Direct customer testimonials, there is no substitute and as much as I think about my team as you can tell.

Speaker Change: In some aspects.

Speaker Change: And something that's the basis of what today is about 95% of all energy storage, which are pumped hydroelectric dams.

You all will be the judge of me in the end.

However, there is no substitute to hearing directly from our customers, where we build projects turned them over for live and operating and listen to them talk about how we've executed together.

Speaker Change: So we are leveraging those applications continuing to innovate you're going to hear from some of our innovation leaders on this today youll see their EV zero why some of these things are also expanding our total addressable market. So this will be new were very excited today to be announcing a new strategic partnership with Skidmore Owings and.

Yeah.

Returned from this trip two things to highlight here and I'll start in China in the bottom right that was the beginning of the trip that led to the announcement of the new agreement and.

Speaker Change: Merrell.

Speaker Change: Because they are a large office here in New York for the people in the room you may know them. So were there one of the most renowned engineering and architectural firms.

No coincidence, but the full operation of the system and as witnessed by some of the government officials locally.

Speaker Change: Baker is here he will be up on stage with me today.

This was an important milestone for us not only all the milestones that were achieved the last six months as we brought that system up and going through what they are.

Speaker Change: He is a part of.

Speaker Change: AUM.

Speaker Change: With the lead designer and architect around the Birch Cleveland the largest building in the world 820 meters there.

A complex process in China.

Our government mandated and controlled environment, even at each province level and achieving what we did in terms of showing that operation a lot of discussion on hey, how is gravity you're doing how so how is the <unk> system coming.

Speaker Change: There are going to be many large superstructures built many many over the next 10 2030 years, we can do it very efficiently now, but most importantly, we are going to be mandated and it will be required to look at things like carbon payback on these buildings and we've been innovating around integrating energy storage in particular.

You don't work as plan.

CNBC was there seem to see Asia. They did a 30 minute video we're translating it for you.

Speaker Change: <unk> energy storage.

One of the key outputs of that is the performance above expectations, we're going to be sharing more of that as our local partner puts that data together, so you'll be seeing some more updates on that very exciting very exciting also the extension of that agreement. The other trip. We had was in Riyadh and I. It was accompanied by Bill gross is a co founder of energy volatile.

Speaker Change: In the design of superstructures.

Speaker Change: And Paul buildings, and so very excited to share that it does introduce a whole new addressable market for us that I think from a financial or analysts perspective would not have been included in how you've been thinking about.

Speaker Change: Some of the things that are addressable to us I think one of the hopefully the confidence as we've earned is that.

So the founder of idea lab.

Really interesting to be a part of that meeting that it was called a a global meeting looking at collaboration development and energy and the energy topics. We all know not only renewables, but getting into the equity of energy and energy development.

Speaker Change: We are no stranger to taking technology and applying it to solve either customer problems or environmental problems and a very strong way. This is another example of that we're also going to have Dr. Jose and dry D. That's been working with <unk> since the beginning.

And as well the fundamental question coming out of those sessions that had a breakout group that's advanced energy solutions, there's multiple Ceos from across the world are part of that both new technology and existing.

Speaker Change: The chair of mechanical and civil engineering at Caltech, which probably has one of the most world renowned seismic studies or in the world. So.

Speaker Change: We're going to be talking about and sharing a little bit about what we're doing on that technology side and what that means.

So I've been a part of that for about 18 months and we signed a new collaboration agreement with the World Economic Forum as you see there.

Speaker Change: Terms of how we're thinking about the evolution of the company.

Speaker Change: The evolution of the gravity technology.

The main question coming out of their fundamental with all the growth that's coming.

Speaker Change: And then finally, we're going to be talking about some other projects that are known I think to the community in terms of the PGE project with Calistoga that is one that we are keeping on our balance sheet and have a turn and a half year tolling agreement.

And even well above their projections I'm going to share. Some data how are we going to meet that demand for energy and do we have this pending energy crisis coming.

It got a lot of dialogue interesting nuclear has come on.

Speaker Change: <unk>, Texas, We also acquired a 57 megawatt interconnect. That's another project, we are going to be owning keeping on our balance sheet.

Strong back into an SMA are strong back into this discussion.

And this co existence, that's going to be what I believe will be for a long time, especially with some of the new technologies that make even fossil fuel more efficient and less ghd emitting we're going to need all the power, we can get absolutely renewables and storage will play a key component of that but it really is massive and it.

Speaker Change: Our and we'll be doing project financing so from a just a cash perspective, there is pretty attractive models out there to project finance. These given all of these projects are low double digit Unlevered IRR.

Speaker Change: We're going to talk a little bit more about this market and how we see it evolving but.

If you look at some of the data out here and this is just I'll start with on the left hand side.

Speaker Change: We see a very attractive space here for attractive assets to own them, we don't have to own them for their life. There's obviously lots of companies, where we can flip those out too for cash is needed, but they are assets and a part of our business model that we will be continuing to evolve as we want to become as a public company much more predictable a bit in our cash flows.

But you are looking at in 2023 is about under a trillion of investments that had been made versus by 2030. So that's not a 2050 and that is a 2030 growth.

The investment that would be required at I think four to five trillion.

So we would be on track for 2015 net carbon neutral.

Speaker Change: As our revenues go every year I think one of the things you've seen with US is the nature of being a young company and in a new growth space and.

So this is a definitely a worth a we're looking at our corn type of topic, because it puts things front and center on what our country's doing.

Speaker Change: I don't want apologize for this but we have lumpy cash flows and lumpy type of revenue, it's a nature of being in a new growth area I am personally no stranger to it from 33 years working across both public companies some of the largest and new startup and innovative companies that are growing fast, but I think an incumbent upon us as we do our.

To try to increase that spending.

It is a large gap I think and what we see today, but.

But the other thing is the more I think.

Impressive in a way as this chart on the right hand side, which we're looking at is just.

In two years and what was forecast in 2022 versus the light blue. It was forecast in 2023. So in just one year to forecast have massively ramp in terms of what that worldwide energy storage demand outlook and gigawatt hours is going to be and that's just in one year.

Speaker Change: Planning to look at our business models look at the leverage of our team today look at how we spend our capex and our opex and putting in place something that is going to be a very strong business model for shareholders.

Speaker Change: And excited to share a little bit of more about that with you today and then finally.

And what is not a surprise I know to all of you of why is that happening. This isn't only about this part in the left here this demand growth.

Speaker Change: And we have an R&D center that we've been building out our customer solution Center. That's a part of the initial collaborations with Enel Green power in Texas, We acquired the interconnect from them. There we have a research and development collaboration agreement with them that initially started with a project we're going to turn it over.

And what's happening with.

Electric vehicles and electrification, but think about the last three to six months, what's been so topical.

So this is about now generative AI and just pure processing hyper scaler bitcoin, but with all of that productivity that AI is intended to enable that.

Speaker Change: And al has a lot of global aspirations are in 33 countries Enel Green power.

Speaker Change: In addition, they want to see a lot of our newer technologies proven out at a commercial scale and so this isn't just about one application of gravity, but as youre going to hear it's about some of these new applications of gravity for example, taking advantage of slopes that exist.

That is going to suck a lot of power.

And a lot of people are now thinking about how are we going to meet that demand.

A lot of that with the wind and solar build out and see their supply variability that will create more intermittency and therefore, a higher demand and I know this is no surprise to anybody here storage will continue to be a strong imperative for that.

Speaker Change: And there are many many in each country. There are thousands of places where instead of building a structure and that cost to build a structure like <unk>, we can leverage existing terrain leverage for example, our same technology with our composite blocks or as youre going to learn today, even with water and a modular pumped hydro solution, which is.

And as you look at this with that same chart on the left this breaks it out a little bit by segment.

Speaker Change: But we received the award from Aqua power for.

Typically and as a company and I think just as an industry, it's hard to go out more than.

Speaker Change: That achieves economics that have not been achieved and long duration or projected.

358 years, just because things change so much if you go back to when we founded the company. If I go back to that 2018 2017, we had a view of the world than they thought long duration would be here and be even half of the market of new deployments right now and it's actually still developing still.

Speaker Change: And that's because we're limiting that construction cost and leveraging some of the terrain and so a lot of those new technologies are going to be built out in this solution center. It's underway. It's happening. This year, we will have technologies shown and demonstrated within this year and some of these new things we're going to learn about today. So very excited this will.

Still developing we uniquely are monetizing our long duration technology through licensing no one else's.

Speaker Change: Consume I think a good chunk of even some of the product in the portfolio discussion that we're going to have with some of the leaders at <unk>.

And doing that in a very highly profitable way that will bring future royalties with volume when it comes and it will come.

Speaker Change: And we're going to sprinkle in.

Speaker Change: Direct customer testimonials, there is no substitute and as much as I think about my team as you can tell.

But this gives you a sense just by technology. The types of numbers that are going to be spent we're very focused in this next.

Speaker Change: You all will be the judge of me in the end.

246 years that drives our technologies that we're bringing to market today for that future and even with hydrogen the development of hydrogen.

Speaker Change: However, there is no substitute to hearing directly from our customers, where we build projects turn them over for live and operating and listen to them talk about how we've executed together.

We.

Don't believe it's any silver bullet out there I think for the world, but it will have a place in some key applications.

Speaker Change: Yeah.

Speaker Change: Returned from this trip two things to highlight here and I'll start in China in the bottom right that was the beginning of the trip and that led to the announcement of the new agreement and.

As the micro grid backup that we developed it was the only way to sustainably backup a city of 5000 residents turn off the diesel Gen. If they have to roll in there every year during the fire season. So.

Speaker Change: No coincidence, but the full operation of the system and as witnessed by the us and the government officials locally.

The numbers are all there I know, we see them, but it is when you step back and look at just in the last 12 months what's been developed.

Speaker Change: This wasn't an important milestone for us not only all of the milestones that were achieved the last six months as we brought that system up and going through what they are.

It's.

It's pretty staggering and it has.

And continues to I would say adapt my perspective, and our country's perspective on things that we may accelerate a bit more to deal with it and.

Speaker Change: A complex process in China.

Speaker Change: Our government mandated and controlled environment, even at each province level and achieving what we did in terms of showing that operation a lot of discussion on hey, how its gravity doing how so how is the <unk> system coming.

And if you start with the regions of the World where those opportunities are 90% are in five countries. So I want to simplify this a bit for investors. This is part of unlocking evolved and open up a bit how we look at the world. All of this of course information will be public.

Speaker Change: You don't work as plan and.

Speaker Change: CNBC was there seem to see Asia. They did a three minute video we're translating it for you one of the key outputs of that is the performance above expectations, we're going to be sharing more of that as our local partner puts that data together, so you'll be seeing some more updates on that very exciting very exciting also the extension of the agreement.

And online here, but this will give you some of the data that's behind what we're doing why are we in energy solutions provider why are we unique in that.

Only energy storage provider in the world, that's providing short long and these new ultra long duration solutions.

Speaker Change: Other trip, we had was in Riyadh and I. It was accompanied by Bill gross is a cofounder of energy volatile. So the founder of idea lab.

Clearly it has to prove out with investors of they believe that will be valuable.

Speaker Change: Really interesting to be a part of that meeting that it was called a <unk>.

Obviously, that's not reflected in the stock price today.

Speaker Change: Global meeting looking at collaboration development and energy.

But as we focus on it just to get into the data a bit.

Speaker Change: And the energy topics, we all know not only renewables, but getting into the equity of energy and energy development.

These countries represent where we have a lot of focus I would not rule out in especially from what I've learned the last three months, India is doing a lot of things with some of the biggest industrial customers.

Speaker Change: And as well the fundamental question coming out of those sessions that had a breakout group. That's advanced energy solutions. There is multiple Ceos from across the world are part of that both new technology in existing.

Customers in the World that are based out of India are looking at big initiatives that are looking at $24 seven renewable.

And if you think about 24 seven renewable for industrial and think about what I mentioned about this generative AI and more data centers and that need because that is absolutely a 24 seven need that today cannot be met in our renewable way for 24 seven deaths economic it's economic.

Speaker Change: I've been a part of that for about 18 months and we signed a new collaboration agreement with the World Economic Forum as you see there.

Speaker Change: The main question coming out of their fundamental with all the growth that's coming in.

Speaker Change: And even well above their projections I'm going to share. Some data how are we going to meet that demand for energy and do we have this pending energy crisis coming.

So I think very exciting there I would add that South Africa.

Speaker Change: It got a lot of dialogue interesting nuclear has come.

Is also a very interesting and developing market. It won't have the numbers, yet just like India doesn't today, but suffice to say the things that do get done there and I'd say in particular, India. When they're done they will be large they will be large nothing will be done small.

Speaker Change: Drawing back into an SMA are strong back into this discussion.

Speaker Change: And this coexistence, that's going to be what I believe will be for a long time, especially with some of the new technologies that make even fossil fuel more efficient and less ghd emitting we're going to need all the power, we can get absolutely renewables and storage will play a key component of that but it really is massive and if you.

As those things come in catch up.

So focused on those high growth technologies and focused here in the highest growth geographies, we have not only infrastructure over the world, but a lot of our initial customer deployments are in the same spaces. As I said I think I think southern Africa, and Africa is a continent and developing as typical like they didn't telecommunications skipping generate.

Speaker Change: If you look at some of the data out here and this is just I'll start with on the left hand side.

Speaker Change: But youre looking at in 2023 is about under a trillion of investments that had been made versus by 2030. So that's not a 2050 number that is a 2030 growth.

<unk> attack and jumping right to wireless I think theyre going to skip some earlier generations of tech and go right to them more sufficient.

Speaker Change: The investment that would be required its I think four to five trillion.

Speaker Change: So we would be on track for 2015 net carbon neutral.

Storage coupled with renewables.

Speaker Change: So this is definitely a west we're looking our corn type of topic, because it puts things front and center on what our country's doing.

As we move on then and I think as we're <unk>.

Developing out in the regions I, just to remind everyone a bit on what helps inform our perspective as a company.

Speaker Change: To try to increase that spending.

Speaker Change: It is a large gap I think and what we see today.

As our strategic Advisory Board, that's made up of the people that have invested in the company along the way that's not only our founding Investor idea lab, which is the longest running technology incubator in the us arguably the most prominent for sure.

Speaker Change: But the other thing is the more I think.

Speaker Change: Impressive in a way as this chart on the right hand side, which we're looking at is just.

Speaker Change: In two years and what was forecasted in 2022 versus the light blue. It was forecast in 2023. So in just one year to forecast have massively ramp in terms of what that worldwide energy storage demand outlook and gigawatt hours is going to be and that's just in one year.

We're looking at technologies five to 10 years out that's interesting.

<unk> one of the top material companies materials science is fundamental to what we do softbank.

Known to everyone in terms of the largest DC side Aramco the largest energy company in the World. We spent the whole week there the Westwood two days, but my entire executive team was there for meetings with Aramco there are many tentacles to aramco.

Speaker Change: And what is not a surprise I know to all of you of why is that happening and this isn't only about.

Speaker Change: This part in the left here this demand growth.

Speaker Change: And what's happening with.

They have tremendous global aspirations, there an investor in us and we will be playing a role in and supporting them and helping them achieve that strategy.

Speaker Change: Electric vehicles and electrification, but think about the last three to six months, what's been so topical.

Speaker Change: So this is about now generative AI and just pure processing hyper scaler bitcoin.

And then moving forward the mining sector has a lot of de carbonization to do hence investments from BHP.

Speaker Change: With all of that productivity that AI is intended to enable that is going to suck a lot of power.

Largest mining player Korea zinc as I mentioned, the largest nonferrous group and then seen DIY, which is environmental waste remediation in China.

Speaker Change: And a lot of people are now thinking about how are we going to meet that demand.

These things inform us Enel Green power as 33 countries based in Italy.

Speaker Change: A lot of that with the wind and solar build out you see their supply or variability that will create more intermittency and therefore, a higher demand and I know this is a surprise to anybody here storage will continue to be a strong imperative for that.

Other important player there we do a lot of collaboration with them. All of this is an asset that we carry that helps inform where we're putting in our R&D and to make sure its customer focused and customer centric.

So if you look at this the aspect in our.

Speaker Change: And as you look at this with that same chart on the left this breaks it out a little bit by segment.

Our chief commercial officer, Mark <unk>.

Talks about this all the time, which is we don't approach to customers and just try to shove our products down their throat.

Speaker Change: Typically and as a company and I think just as an industry, it's hard to go out more than.

Speaker Change: 358 years, just because things change so much if you go back to when we founded the company. If I go back to that 2018 2017, we had a view of the world than they thought long duration would be here and be even half of the market of new deployments right now and it's actually still developing still.

We listen we understand what their problems are and we bring the technology to market to help solve it it's fundamental.

From calls with customers in Australia, with new customers from the meetings with Saudi Aramco to the customers in the U S. The feedback on this strategy is very positive it is very unique.

Speaker Change: Still developing we uniquely are monetizing our long duration technology through licensing no one else's.

And that's what's leading to some of these massive deals I mean entering a continent like Australia with two six gigawatt hour as you enter.

Speaker Change: And doing that in a very highly profitable way that will bring future royalties with volume when it comes and it will come.

No.

That doesn't happen by accident and that's why we're very excited about what that future is going to hold.

Speaker Change: But this gives you a sense just by technology. The types of numbers that are going to be spent we're very focused in this next.

From a long duration perspective, and what we're doing and I've talked about these things we booked business. We have monetize received cash on royalties at 95% gross margins.

Speaker Change: 246 years that drives our technologies that we're bringing to market today for that future and even with hydrogen the development of hydrogen.

I think no question globally, we're bringing things to market and long duration faster than anyone else with multiple technologies that is live in 24.

Speaker Change: <unk>.

Speaker Change: Don't believe it's any silver bullet out there I think for the world, but it will have a place in some key applications as.

No one else can say that that will inform us and helped US learn as you do in new tech to help optimize optimized for economics learned from customers continue to build out going to the short duration market youre going to hear from Akshay alert I know this was a surprise a few years ago or even a year ago to investors and we started announcing battery projects.

Speaker Change: As the micro grid backup that we developed it was the only way to sustainably backup a city of 5000 residents turn off the diesel Gen is they have to roll in there every year during the fire season. So.

Speaker Change: The numbers are all there I know, we see them, but it is when you step back and look at just in the last 12 months what's been developed.

We built and invested in a few years before a software platform to give us flexibility to manage the coexistence of generation tech by the way that's not just renewable that's also fossil fuel based.

Speaker Change: It's.

Speaker Change: It's pretty staggering and it has.

Speaker Change: And continues to I would say adapt my perspective, and our country's perspective on things that we may accelerate a bit more to deal with it and.

Various storage technologies, not just our own and manage that in a way that also enables new applications around optimization of charging and discharging asset management.

Speaker Change: And if you start with the regions of the World where those opportunities are 90% are in five countries. So I want to simplify this a bit for investors. This is part of unlocking evolved and opening up a bit how we look at the world. All of this of course information will be public.

That is why we're getting selected as I said it starts with the experience of the team to do it we've done that well in the initial projects been a big part of the revenue number in.

And even all positive unit economics, I know that was something that as we started to announce those things a lot of questions. Hey are you buying those projects, we're bidding them low because you want revenue or how are you going to operate you have a new software system. How are you going to turn that over well aren't you going to get exposed to liquidated damages.

Speaker Change: And online here, but this will give you some of the data.

Speaker Change: Behind what we're doing why are we in energy solutions provider why are we unique in that.

Speaker Change: Only energy storage provider in the world, that's providing short long and these new ultra long duration solutions.

Number speak for themselves I've covered them. They said that starts with the people most of whom are not in this room that are from energy volte and bring that experience.

Speaker Change: Clearly it has to prove out with investors of they believe that will be valuable obviously, that's not reflected in the stock price today.

Speaker Change: But as we focus on it just to get into the data a bit.

Strategically then to start to begin to bring it home here and summarize before we.

Speaker Change: These countries represent where we have a lot of focus I would not rule out in especially from what I've learned the last three months, India is doing a lot of things with some of the biggest industrial customers.

We turn it over and take a break.

Largest market and growth regions. That's what we're focused on addressing from a market perspective, and we're going to be sharing more about that portfolio today as I mentioned.

Speaker Change: Customers in the World that are based out of India are looking at big initiatives that are looking at 24 seven renewable.

This theme of becoming more predictable in terms of our cash flows and therefore, how we project our revenue as I said, we've got two years, we're in our third year.

Speaker Change: And if you think about 24 seven renewable for industrial and think about what I mentioned about this generative AI and more data centers and that need because that is absolutely a 24 seven need that today cannot be met and a renewable way for 24 seven deaths economic that's economic.

Still young in an emerging.

Growth area, obviously that is a high bar as a public company.

And but something we do not take lightly hence our management of cash and the fact that we have no debt, but also looking at.

Speaker Change: So I think very exciting there I would add that South Africa.

And really getting perspectives on where the profit pools.

Speaker Change: Is also a very interesting and developing market. It won't have the numbers, yet just like India doesn't today, but suffice to say the things that do get done there and I'd say in particular, India. When they're done they will be large they will be large nothing will be done small.

In this ecosystem of energy storage.

So we've done a lot of work here and looking at where those profit pools come from and how we look at more recurring revenue streams. The license and royalty model will be a big part of that we're going to be sharing numbers, but the numbers are not small the bookings are not only $100 million in the licenses alone of which $60 million or so we've recognized the cash payments are over 10 years.

Speaker Change: As those things come in catch up.

Speaker Change: So focused on those high growth technologies and focused here in the highest growth geographies, we have not only infrastructure over the world, but a lot of our initial customer deployments are in the same spaces. As I said I think I think southern Africa, and Africa is a continent and developing as typical like they did in telecommunications skipping generate.

We're going to share Michael would be sharing more about that but the royalty potential very conservatively is it 200 million plus over this and the same next eight to 10 year period. So excited as these things get deployed out you've seen the numbers in terms of the demand requirement that's going to be very exciting and then we're very focused.

Speaker Change: <unk> attack and jumping right to wireless I think theyre going to skip some earlier generations of tech and go right to them more sufficient.

Hopefully you understand and see on the profit potential of this portfolio and how it evolves and youre going to see that and what we're going to be guiding on gross margins not only what we achieved in the first two years, we had a little higher hardware content, hence the single digit gross margin in 'twenty three alone, but as youre going to see as you saw in our first quarter 'twenty six person.

Speaker Change: Storage coupled with renewables.

Speaker Change: As we move on and I think as we're <unk>.

Speaker Change: Developing out in the regions I just to remind everyone. Our bid on what helps inform our perspective as a company.

Speaker Change: As our strategic Advisory Board, that's made up of the people that have invested in the company along the way that's not only our founding Investor idea lab, which is the longest running technology incubator in the U S. Arguably the most prominent for sure.

Rent on pure battery projects, so no licensing revenue in there and as we're going to guide 24, and 25, you will see it they are double digit unit economics, which again at this stage as a company I think is.

Speaker Change: We're looking at technologies five to 10 years out that's interesting.

Is meeting our expectation, we will do better as we build this company.

Speaker Change: <unk> one of the top material companies material science is fundamental to what we do softbank.

Speaker Change: Known to everyone in terms of the largest D. C side Aramco the largest energy company in the World. We spent the whole week there the Westwood two days, but my entire executive team was there for meetings with Aramco there are many tentacles to aramco.

Yeah.

Well just a few minutes on our business model here.

Talked about our licensing and how that's been playing you see some of the numbers there we've been building and turning over projects that carries an EPC component, which tends to have about a 10% type of margin, 5% to 10% depending on how the project goes.

Speaker Change: They have tremendous global aspirations, there an investor in us and we will be playing a role in and supporting them and helping them achieve that strategy.

Because you are responsible for another supply chain, we will continue to do that potentially more on a what's called an EQ or an engineered equipment basis, where we may not be the EPC, but provide the integrated solution.

Speaker Change: And then moving forward the mining sector has a lot of de carbonization to do hence investments from BHP.

That's something we're looking at it every project as you've seen in our numbers they've always been positive unit economics. It will continue and it will increase as youre going to see in our projections, but there's also another segment that youre going to learn more about today in the own and operate in these are things, where we have existing projects today on our balance sheet, we believe theres going to be more opportunity for <unk>.

Speaker Change: Largest mining player Korea zinc as I mentioned, the largest nonferrous group and in C and D Y which is environmental waste remediation in China.

Speaker Change: These things inform us Enel Green power as 33 countries based in Italy. Another important player. There we do a lot of collaboration with them. All of this is an asset that we carry that helps inform where we're putting in our R&D and to make sure its customer focused and customer centric.

We believe theres going to be more volatility in pricing in the market. The severe weather events are not going to stop I think theyre going to continue and potentially accelerate.

Speaker Change: So if you look at this the aspect in our.

Which is unfortunate we need to.

Speaker Change: Our chief commercial officer, Mark <unk>.

Really focus on cooling down the planet.

Speaker Change: Talks about this all the time, which is we don't approach to customers and just try to shove our products down their throat.

So we're going to continue to see things that we haven't seen before.

And I think this demand for energy the variability.

The volatility in those market in there for the pricing plays well into how we're positioned.

Speaker Change: We listen.

Speaker Change: We understand what their problems are and we bring the technology to market to help solve it.

Especially with the strategic partners that I mentioned and the investors and what some of their aspirations are.

Speaker Change: It's fundamental.

Speaker Change: Calls with customers and meet and Australia with new customers from the meetings with Saudi Aramco to the customers in the U S. The feedback on this strategy is very positive it is very unique.

In terms of how that manifests itself across the portfolio, we've got our product portfolio on the left side there in the different business models and no surprise gravity and our software we can and will continue to license that so you can expect more from us there the build and transfer.

Speaker Change: And that's what's leading to some of these massive deals I mean entering a continent like Australia with two six gigawatt hour as you enter.

Speaker Change: Yes.

Speaker Change: <unk>.

Speaker Change: That doesn't happen by accident and that's why we're very excited about what that future is going to hold.

Or we can do across everything just depends on the region of the World. We didn't go set up shop in a big way in China for obvious reasons, South Africa certain regions of the World. There is no reason for us to go spend that money in cash and tie up cash sometimes in those countries. The license model works, but we can also build in certain developing places and from and own and operate.

Speaker Change: From a long duration perspective, and what we're doing and I have talked about these things we booked business. We've monetize received cash on royalties at 95% gross margins.

Speaker Change: I think no question globally, we're bringing things to market and long duration faster than anyone else with multiple technologies that is live in 24.

Can really do that anywhere across our technologies, obviously, we own the software.

Speaker Change: No one else can say that that will inform us and helped US learn as you do in new tech to help optimize optimized for economics learned from customers continue to build out going to the short duration market youre going to hear from Akshay <unk>. I know this was a surprise a few years ago or even a year ago to investors and we started announcing battery projects.

And can do the asset management, we have bid optimization akshay logo is going to talk a little bit more about this so all the tools, we need to operate operate efficiently and really achieve differentiated results in that market, we have them and develop them in house.

Okay.

Going forward and I'll wrap up here in the next few minutes.

Speaker Change: We built and invested in a few years before a software platform to give us flexibility to manage the coexistence of generation Tech, but really that's not just renewable that's also fossil fuel based.

Rather we've talked about continuing licensing it's operating now we have a lot of new applications.

A lot of which we will be building out taking advantage of topology or taking advantage of new designs and structures.

Speaker Change: Various storage technologies, not just our own and manage that in a way that also enables new applications around optimization of charging and discharging asset management.

That's not only going to be higher profit higher revenue, but that introduces new addressable markets and the building sector that probably people weren't thinking about.

Speaker Change: That is why we're getting selected as I said it starts with the experience of the team to do it we've done that well in the initial projects been a big part of the revenue number and.

Supplying gravity too so that's exciting.

Speaker Change: And even all positive unit economics, I know that was something that as we started to announce those things a lot of questions. Hey are you buying those projects, we're bidding them low because you want revenue or how are you going to operate you have a new software system. How are you going to turn that over well aren't you going to get exposed to liquidated damages.

The market today is conventional matter a 95% of everything is getting deployed globally.

Again, we're going to be doing more and longer duration going forward. This 24 seven need.

Is it becoming more prominent with the Terawatt growth.

But we will continue to build on this core power youre going to see a testimonial. There. That's an investment we made if you recall in a domestic provider for.

Speaker Change: Number speak for themselves I've covered them. They said that starts with the people most of whom are not in this room that are from energy volte and bring that experience.

For domestic content for lithium ion batteries, we have very special advantages with that investment that the CEO himself willing to grow is going to be sharing with you on a video today and in green hydrogen and these micro grids, we see a lot of opportunities to replicate what we're doing in calistoga for Pacific gas and electric Craig Horn Who's here.

Speaker Change: Strategically then to start to begin to bring it home here and summarize before we.

Speaker Change: We turn it over and take a break.

Speaker Change: Largest market and growth regions. That's what we're focused on addressing from a market perspective, and we're going to be sharing more about that portfolio today as I mentioned.

Today, we will be sharing more around that with you and then this the.

Own and operate model, which I think will continue to become a bigger part of our portfolio given the amount of.

Speaker Change: This theme of becoming more predictable in terms of our cash flows and therefore, how we project our revenue as I said, we've got two years, we're in our third year.

Capital, that's interested in facilitating and financing needs and financing needs in an attractive way and how those economics and <unk> work those projects just to give you a little preview.

Speaker Change: Still young in an emerging.

Speaker Change: Growth area, obviously that is a high bar as a public company.

Owning those projects come with somewhere around 70% EBIT streams through the life with an.

Speaker Change: And but something we do not take lightly hence our management of cash and the fact that we have no debt, but also looking at.

And assumed type of project financing model, so attractive where we're going to do it and I think helpful. As we evolve the company.

Speaker Change: And really getting perspectives on where the profit pools.

Speaker Change: In this ecosystem of energy storage.

Speaker Change: So we've done a lot of work here and looking at where those profit pools come from and how we look at more recurring revenue streams. The license and royalty model will be a big part of that we're going to be sharing numbers, but the numbers are not small the bookings are not only $100 million in the licenses alone of which $60 million or so we've recognized the cash payments are over 10 years okay.

So I'll finish here like we started with data.

I'm, giving you a little preview of what Michael beer is going to be covering of what the next two years are going to look like.

So from what we see today and we also Michael is going to be sharing a little more simplified way.

We talk about our sales funnel in terms of what's contracted.

Speaker Change: We're going to share Michael would be sharing more about that but the royalty potential very conservatively is it 200 million plus over this and the same next eight to 10 year period. So excited as these things get deployed out you've seen the numbers in terms of the demand requirement that's going to be very exciting and then we're very focused.

What's actually booked so what's in our backlog and then what's that near term 12 to 24 month, either project awards and short listings or advanced short listing. So we simplified that by one phase of the funnel as far as what we report publicly.

I think that will be more clear and more near term. Obviously the numbers are large anyway, but really pulling that a little closer in terms of the timeframe of converting awards for example, the bookings.

Speaker Change: Hopefully understand Nancy on the profit potential of this portfolio and how it evolves you're going to see that and what we're going to be guiding on gross margins not only what we achieved in the first two years, we had a little higher hardware content, hence the single digit gross margin in 'twenty three alone, but as youre going to see as you saw in our first quarter, 2006%.

Is something we're trying to improve upon as we build the company.

But if you look at this next two years, we're looking at a range of $500 million to $700 million.

<unk> of our revenue there are.

Speaker Change: On pure battery projects.

The reason that that range is a little wide you can imagine is as I've shared there are some large projects work on we we don't try to be everything to everyone and all customers, we focus on the largest opportunities in the largest regions.

Speaker Change: Licensing revenue in there and as we're going to guide 24, and 25, you will see it or they are double digit unit economics, which again at this stage as a company I think is.

Speaker Change: Is meeting our expectation, we will do better as we build this company.

It's worth it and were always with customers that.

Arent one trick pony, it's their customers that have a portfolio of things that theyre going to be doing over the next 10 plus years.

Speaker Change: Just a few minutes on our business model here, we've talked about our licensing and how that's been playing you see some of the numbers there.

It's about building those relationships delivering.

Speaker Change: We've been building and turning over projects that carries an EPC component, which tends to have about a 10% type of margin, 5% to 10% depending on how the project goes.

And delivering with quality, so theres a confidence for them to want to do more with you. That's why we focused on the large ones and hence over 60% of that that's in this near term awards and in.

Speaker Change: Because you are responsible for another supply chain, we will continue to do that potentially more on a what's called an EQ or an engineered equipment basis, where we may not be the EPC, but provide the integrated solution.

In short listings for conversion over 60% of that today as we look at 2025 are with existing customers or with strategic investors. For example, so that's a high level of confidence that gives us in putting these numbers out.

Speaker Change: That's something we're looking at it every project as you've seen in our numbers they've always been positive unit economics. It will continue and it will increase as youre going to see in our projections, but there's also another segment that youre going to learn more about today in the own and operate in these are things, where we have existing projects today on our balance sheet, we believe theres going to be more opportunity for <unk>.

Forecasting gross margins of 15% to 20% in that period, reaffirming what I said last quarter. So adjusted EBITDA positive in 2025.

So I think that's a.

Something that I hope gives a lot of confidence given what we're looking at and some of the things we're going to talk about in the in the portfolio today.

Speaker Change: We believe theres going to be more volatility in pricing in the market. The severe weather events are not going to stop I think theyre going to continue and potentially accelerate.

Okay.

That completes my section I want to call up and introduce Akshay LAWA here.

Speaker Change: Which is unfortunate and we need to.

Speaker Change: Really focus on cooling down the planet.

And I'll turn this over to you akshay.

Akshay joined the company in 2021, I already mentioned some of his background. He is a.

Speaker Change: So we're going to continue to see things that we haven't seen before.

Speaker Change: And I think this demand for energy the variability.

Ground, even before he joined Green Smith, and I think 2011, you joined Green Smith, that's correct. Okay, I'm here I'm going to pass the time here to you but.

Speaker Change: The volatility in those market and therefore, the pricing plays well into how we're positioned.

Speaker Change: Especially with the strategic partners that I mentioned and the investors and what some of their aspirations are.

It's been great to work with Akshay he's been the architect behind our software they've got bought got brought to market very quickly that's enabled.

Speaker Change: In terms of how that manifests itself across the portfolio we have.

Not only our battery portfolio, but our ability to do these hybrid architectures for our customers interestingly of the 100 projects that he did when he was at Green Smith, 100% safety record.

Speaker Change: Got our product portfolio on the left side there in the different business models and no surprise gravity and our software we can and we will continue to license that so you can expect more from US there the build and transfer we can do across everything just depends on the region of the World. We didn't go set up shop in a big way in China for obvious reasons South.

So that's key in and part and parcel to how we built the company and attribute to that experience set that I mentioned, so I'll turn it over to evening. Thanks, Rob. Good morning, everybody. My name is extra labor I run and manage the.

Speaker Change: Erica certain regions of the World. There is no reason for us to go spend that money in cash and tie up cash sometimes in those countries. The license model works, but we can also build in certain developing places and from and own and operate can really do that anywhere across our technologies, obviously, we own the software.

<unk> solutions.

And then as well.

Here's a quick recap of the last two years sort of at the end of 2021, we immediately got interaction they've looked our software suite of products that we expanded ourselves into the.

Speaker Change: And can do the asset management, we have bid optimization akshay logo is going to talk a little bit more about this so all the tools, we need to operate operate efficiently and really achieve differentiated results in that market, we have them and develop them in house.

Lithium ion battery energy storage space and finally, the team that you will see as I as I talk about the different solutions, we offer a short long and ultra long and finally the software.

It's focused around hybrids as we as we walk through these different type of assets that needs to be Orca, Sweden.

Speaker Change: Okay.

Speaker Change: Going forward and I'll wrap up here in the next few minutes.

The underlying theme is being able to have a hybrid problems.

Speaker Change: Rather we've talked about continuing licensing it's operating now we have a lot of new applications.

All of that is enabled by our software suite.

Speaker Change: A lot of which we will be building out taking advantage of topology or taking advantage of new designs and structures.

Suite of products, which we will look at little bit later on today.

Speaker Change: That's not only going to be higher profit higher revenue, but that introduces new addressable markets and the building sector, they probably people weren't thinking about.

Yeah.

As quoted in the B S.

Speaker Change: Ah supplying gravity too so that's exciting.

The world needs a lot of energy storage the numbers are big and the suite of products that we offer here Thursday.

Speaker Change: The market today is conventional battery and 95% of everything is getting deployed globally.

Speaker Change: Again, we're going to be doing more and longer duration going forward. This 24 seven need.

Equal to 24 months.

Nevada energy.

Speaker Change: Is it becoming more prominent with the Terawatt growth, but we will continue to build on this core power youre going to see a testimonial. There. That's an investment we made if you recall in a domestic provider for.

Efficient.

The re Gardner.

Sure.

The event celebrated the transformation of one of the Novartis former coal sites into a standalone battery facility storing them to 220 megawatts of power generated from renewable sources. The project, which was completed in a record four months is a testament to what can be achieved with strong leadership and a commitment to sustainable.

Speaker Change: For domestic content for lithium ion batteries, we have very special advantages with that investment that the CEO himself willing to grow is going to be sharing with you on a video today and in green hydrogen and these micro grids, we see a lot of opportunities to replicate what we're doing in calistoga for Pacific gas and electric Craig Horn Who's here.

Energy practices.

Really represents.

Illustration.

Speaker Change: Today, we'll be sharing more around that with you and then this the.

In the U S.

1965 and on this site.

Craig Horn: Own and operate model, which I think will continue to become a bigger part of our portfolio given the amount of.

Firepower.

Thank you megawatts it was.

Power just start to grow a las Vegas purely are today.

Speaker Change: Capital, that's interested in facilitating and financing needs and financing needs, an attractive way and how those economics and <unk> work those projects just to give you a little preview.

Up in the air.

Hey, Sandeep.

And it really reflects the ability that exist today to capture this fantastic solar energy that exists here in Nevada and use it when our customers need it most.

Speaker Change: Owning those projects come with somewhere around 70% EBIT streams through the life with an.

NV energy is the state regulated utility. So we are the largest energy provider in Nevada. Our strategy is to continue to grow our solar and storage less reliant on market purchases, primarily from California, but other states as well and to achieve renewable.

Speaker Change: And assumed type of project financing model so.

Speaker Change: Where we're going to do it and I think helpful. As we evolve the company.

Speaker Change: So I'll finish here like we started with data.

Speaker Change: I'm, giving you a little preview of what Michael beer is going to be covering of what the next two years are going to look like.

So we're trying to be 50% renewable by 2036 months to a year would be a reasonable timeframe for a project like this we broke ground in August and finished in December four months really to build a project like this is just incredible and I think that's a testament to the partnership between NV energy.

Speaker Change: So from what we see today and we also Michael is going to be sharing a little more simplified way.

Speaker Change: We talk about our sales funnel in terms of what's contracted.

Speaker Change: Whats actually booked so what's in our backlog and then what's that near term 12 to 24 month, either project awards and short listings or advanced short listing. So we simplified that by one phase of the funnel as far as what we report publicly I think that will be more clear and more near term obviously that number.

In energy of all the talented people involved all around on this are challenged right from the outset was to figure out how to do more with less working with our vendors both on the supply side and on the construction side to ensure that everything that you needed to come together at the right time like it come together, we were able to work collaboratively with our partners and the customers to actually go online a couple of days ahead of schedule.

Speaker Change: Our large anyway, but really pulling that a little closer in terms of the timeframe of converting awards for example, the bookings.

Speaker Change: Is something we're trying to improve upon as we build the company.

Towards the end of last year.

Which really served.

Speaker Change: But if you look at this next two years, we're looking at a range of $500 million to $700 million.

The customer and the utility and what they were trying to achieve out of this project and it also is a testament to the flexibility of the business model that energy volt has in terms of picking the right ecosystem that makes sense for the end customer and we continue to employ that method listening to the customer first and understanding how we divide the right solution to serve their needs and their purpose.

Speaker Change: Of of revenue there are.

Speaker Change: The reason that that range is a little wide you can imagine is as I've shared there are some large projects work on we we don't try to be everything to everyone and all customers. We focus on the largest opportunities in the largest regions. It's just it's worth it and always with customers that arent one trick ponies their customers.

Energy won't prove themselves on this project. It's the first project. We did of this size IC energy are all.

Doing projects for us in the future.

Speaker Change: They have a portfolio of things that theyre going to be doing over the next 10 plus years.

There is more battery storage development and our future.

A critical part of our grid.

Speaker Change: It's about building those relationships delivering.

Lot of utilities in the country that can say over the course of 2024 hour rates are going down.

Speaker Change: And delivering with quality, so theres a confidence for them to want to do more with you. That's why we focused on the large ones and hence over 60% of that that's in this near term awards and.

<unk> like this.

US to capture that Sun and user time, they need it the most.

To deliver that critical energy to our customers. So again I want to thank everybody for calling this project the NV energy team just did a remarkable job.

Speaker Change: In short listings for conversion over 60% of that today as we look at 2025 are with existing customers or with strategic investors. For example, so that's a high level of confidence that gives us in putting these numbers out.

And again, our burners in ACI and energy call. Thank you our partners and the IBEW couldn't happen without you.

Speaker Change: In forecasting gross margins of 15% to 20% in that period, reaffirming what I said last quarter. So adjusted EBITDA positive in 2025.

A few here.

Something that we're very proud of that is going to be a tremendous benefit for our customers for decades.

Speaker Change: So I think that's a.

This is in recognition of the opening of the new battery energy storage system.

Speaker Change: Something that I hope gives a lot of confidence given what we're looking at and some of the things we're going to talk about in the in the portfolio today.

And maybe just on the <unk>.

Energy solutions.

Management.

In energy.

This new facility further energy innovation congratulations.

Speaker Change: Okay.

Speaker Change: That completes my section I want to call up and introduce Akshay LAWA here.

Speaker Change: And I'll turn this over to you akshay.

That was a really nice video for a 440 megawatt hour project in Nevada.

Speaker Change: Akshay joined the company in 2021, I already mentioned some of his background. He has a background even before he joined Green Smith and I think 2011, you joined Green Smith, that's correct. Okay. I'm here I'm on the test of time here to you but.

The 100 plus projects that have been part of I think this one is.

Probably in the top five it takes a lot of dedication and they're really talented team to.

Speaker Change: It's been great to work with Akshay he's been the architect behind our software they've got bought brought to market very quickly that's enabled.

You'll be able to execute a project of this scale in the.

The really short amount of time.

<unk> spending by turning 40 on the sides I broke my family over for Thanksgiving and we had a the.

Speaker Change: Not only our battery portfolio, but our ability to do these hybrid architectures for our customers interestingly of the 100 projects that he did when he was at Green Smith, 100% safety record.

Lunch event onsite and also Christmas night is a very important night. That's the evening of Christmas We ran at full capacity to 120 megawatts.

Speaker Change: So that's key in and part and parcel to how we built the company and attribute to that experience set that I mentioned, so I'll turn it over to good thing. Thanks, Rob. Good morning, everybody. My name is actually allowed well I run and manage the.

As we as we get into the short duration battery storage systems.

Speaker Change: <unk> solutions.

Yeah.

The products that we are building here at energy World are anchored around three separate fundamentals.

Speaker Change: And as well.

Speaker Change: Here's a quick recap of the last two years sort of at the end of 2021, we immediately got into action develop Dar software suite of products that we expanded ourselves into the.

The first one is <unk>.

We do not believe in having a very prescriptive well defined.

And they are constrained product, we'd rather believe in having a good platform, allowing our customers, giving them the flexibility because every each of these projects is very unique.

Speaker Change: Lithium ion battery energy storage space and finally, the B team that you will see as I as I talk about the different solutions, we offer a short long and ultra long and finally the software.

Every customer is trying to solve for different constraints.

Speaker Change: It's focused around hybrids as we as we walk through these different type of assets that needs to be Orca, Sweden.

The second one is the economics economics is at the heart and it's right in the center of how these projects pencil out.

Speaker Change: The underlying theme is being able to have a hybrid problems.

Sending my time backup before before energy World I was over at right time power, which is a.

Speaker Change: All of that is enabled by our software suite.

A lot of IBP and.

Speaker Change: Suite of products, which we will look at little bit later on today.

In a project developer.

With the understanding of how the projects need to be penciled out. So they can actually get to reality economics is right in the middle finally, as we just saw the video.

Speaker Change: Yeah.

Speaker Change: As quoted in the B any if the world needs a lot of energy storage. The numbers are big and the suite of products that we offer here Thursday.

Being able to deliver the project execution is super important.

Okay.

Speaker Change: Equally important for us.

The lithium ion battery storage project at.

Speaker Change: Nevada energy.

LNG wolters called bolt there'll be well it comes in two separate.

Speaker Change: The official.

Speaker Change: Gardner.

Ill put options, we have the DC and the ACF production.

Speaker Change: Sure.

Speaker Change: <unk> celebrated the transformation of one of Novartis former coal sites into a standalone battery facility storing them to 220 megawatts of power generated from renewable sources. The project, which was completed in a record four months is a testament to what can be achieved with strong leadership and a commitment to sustainable energy.

It gives the flexibility for our for our customers not only with regards to the selection of the supply chain and equipment.

But also different <unk>.

Contracting Mccann isms weekend offer them, just as Rob mentioned, either an <unk> or an EPC is a full ramp but also as we've seen in the last two years that a significant amount of new entrants into the market in the bathroom suppliers are now growing vertically integrated which means theyre not only manufacturing cells impacts but their roles.

Speaker Change: Practices.

Speaker Change: Really represents.

Speaker Change: Credible illustration.

Speaker Change: In the U S.

Speaker Change: 1965 and on this site.

So starting to manufacture these 20 foot.

Speaker Change: R&D firepower.

Speaker Change: Thank you megawatt and it was the power to start to grow a Las Vegas purely are today no.

Enclosures some of our customers we work with we find they have msas with such suppliers, whether they'd like to use that and NV energy is a is a real good example of that.

Speaker Change: Thanks Sandy.

Speaker Change: He is a battery and it really reflects the ability that exist today to capture.

Finally, looking at our portfolio.

We often come across projects, where the customer has constraints on land or around four meeting. So the standard off the shelf available equipment is not able to fit the sites could the needle of the customer and they'll have a real good example of that.

Speaker Change: Plastic solar energy that exists here in Nevada, and use it when our customers need it most.

Speaker Change: NV energy is the state regulated utility. So we are the largest energy provider in Nevada. Our strategy is to continue to grow our solar and storage less reliant on market purchases, primarily from California, but other states as well and to achieve renewable.

2023 was a big execution year for US we delivered design built engineered did.

Speaker Change: So we're trying to be 50% renewable by 2036 months to a year would be a reasonable timeframe for a project like this we broke ground in August and finished in December four months really to build a project like this is just incredible and I think that's a testament to the partnership between NV energy.

<unk> delivered these three projects.

As you look across the.

The charge that we've got the first picture for wellhead with just 68 megawatts in.

And queso.

Speaker Change: And as you all and just the tahltan people involved all around on this are challenged right from the outset was to figure out how to do more with less working with our vendors both on the supply side and on the construction side to ensure that everything that you needed to come together at the right time like they come together, we were able to work collaboratively with our partners and the customers to actually go online a couple of days ahead of schedule.

One for NV energy 220 megawatts in Nevada.

Regulated utility the last one in ERCOT 100 megawatt 200 megawatt hours.

Different equipment different states different equipment different application.

The only thing that is able to tie them together is the integration expertise from LNG world.

Speaker Change: Towards the end of last year.

Speaker Change: Which really serve the customer and the utility and what they were trying to achieve out of this project and it also is a testament to the flexibility of the business model that's energy volt has.

The underlying integration and engineering expertise, which is how do we integrate that.

I'd give different.

Technology into the applications that the customers trying to sulfur and the execution capability.

Speaker Change: In terms of picking the right ecosystem that makes sense for the end customer and we continue to employ that method listening to the customer first and understanding how we divide the right solution to serve their needs and their purpose.

All of that is enabled by our World OS software platform, which we have.

Hey section on later on today.

Speaker Change: Energy vault prove themselves on this project is the first project. We did of this size I see energy at all.

The <unk> battery energy storage product is.

Speaker Change: Doing projects for us in the future.

Built around the D C as well as the ACR put options, we have a supply chain that we have established partnerships with in Asia again, we're not weighted prescriptive with the battery that gets integrated but rather we have a suite of different options that our customers can choose from base.

Speaker Change: There is more battery storage development in our future.

Speaker Change: A critical part of our grid.

Speaker Change: A lot of utilities in the country that can say over the course of 2024 hour rates are going down it's projects like this that allow us to capture that Sean and user time, they need it the most to be able to deliver that critical energy to our customers.

On the needs of the project.

Okay.

Speaker Change: Again, I want to thank everybody for calling this project in the energy team just did a remarkable job.

The speed at which this product was built designed build certified.

Speaker Change: And again, our partners at ACI and energy Paul Thank you our partners.

This is fully.

Certified for UL, 90, 540, as well as all the all the NFPA safety requirements and rebuilt our first project in Oregon, using the exact product.

Speaker Change: You couldn't have happened without you.

Matthew: Matthew here.

Speaker Change: Show up with something that we're very proud of that is going to be a tremendous benefit for our customers for decades.

The speed at which this was able to come together was possible because of the expertise of our team.

Speaker Change: As in the recognition of the opening of the new battery energy storage system.

Speaker Change: Thank you for your unwavering.

Yeah.

Speaker Change: The energy management.

We're onto the second generation of our product between the first generation and the second one we've improved energy density by over 35%.

Speaker Change: Management and Green energy.

Speaker Change: Need as new facilities by a further energy innovation congratulations.

And with that improvement we were also able to improve the cost dropped the cost of integration, excluding the batteries by about 25%.

Speaker Change: That was a really nice video for a 440 megawatt hour project in Nevada.

Four main pillars as we did.

Speaker Change: 100, plus projects that have been part of I think this one is.

Designed and build a product.

Speaker Change: Probably in the top five it takes a lot of dedication and they're really talented team.

<unk> ability flexibility around.

The architecture flexibility around the supply chain.

Speaker Change: You'll be able to execute a project of this scale in the in the really short amount of time.

Second one is availability.

Speaker Change: Spending by turning 40 on the sites I broke my family over for Thanksgiving and we had a the.

As we look at these more severe weather events energy storage system monetize as the maximum revenue around such events the price and the volatility in the electricity market is higher during such events.

Speaker Change: Lunch, even onsite and also Christmas night is a very important night. That's the evening of Christmas We ran at full capacity to 120 megawatts.

So the product that we've designed is able to function.

At.

Speaker Change: As we as we get into the short duration battery storage systems.

Negative 40 C. All the way to 45 C without taking any DRAM, it's able to function in higher seismic areas wind gust.

Speaker Change: Yeah.

Speaker Change: The products that we are building here at energy World are anchored around three separate fundamentals.

So the product is available to the customer and most importantly, which I will talk about this as not a me too product, but there was a unique feature which is the AC architecture.

Speaker Change: The first one is.

Speaker Change: We do not believe in having a very prescriptive well defined.

On the supply chain flexibility we.

Speaker Change: And they constrained product, we'd rather believe in having a go platform, allowing our customers, giving them the flexibility because every each of these projects is very unique.

We saw the the three projects from last year first one is using NMC batteries from Samsung. The second one is using the BYD cubes, which is a L. F. B large format LSP and finally, the last one you're using.

Speaker Change: Every customer is trying to solve for different constraints.

Speaker Change: The second one is the economics economics is at the heart and it's right in the center of how these projects pencil out.

<unk> from <unk>.

We have different.

Batteries that can be easily integrated into the B mall platform product.

Speaker Change: Spending my time Baghdad before before energy World I was over at the right time power, which is a.

Further we find customers that have already made interconnection obligations like I was in Australia last week, we are working with.

Speaker Change: A large IBP and.

Speaker Change: In a project developer.

Speaker Change: With the understanding of how the projects need to be penciled out. So they can actually get to reality economics is right in the middle finally, as we just saw the video.

With <unk> that has logged in a particular in motor into the interconnection application.

Such customers will require a solution that can work with that with that very specific power electronics will then become the DC, while the option, which allows again integration of different type of batteries into them.

Speaker Change: Being able to deliver the projects execution is super important.

Speaker Change: Okay.

Speaker Change: Yeah.

Further to increase our energy density VR.

Speaker Change: The lithium ion battery storage project.

<unk>, a stacking solution and this.

Speaker Change: Eligible to Scold me, Walt there'll be well it comes in two separate.

This will instantly doubled the amount of energy density, which is possible into the into the projects.

Speaker Change: Ill put options, we have the D C in the ACL production.

Speaker Change: It gives the flexibility for our customers not only with regards to the selection of the supply chain and equipment.

What's unique about our B world is the.

Speaker Change: But also different contra.

Speaker Change: Contracting Mccann isms weekend offer them, just as Rob mentioned, either an <unk> or an EPC is a full ramp but also as we've seen in the last two years that a significant amount of new entrants into the market in the bathroom suppliers are now growing vertically integrated which means they're not only manufacturing cells impacts, but they're all.

The AC World architecture.

If you look at the way most of the.

Lithium ion battery storage is being built today is mostly around two separate architectures you have a D C. Walt architecture, which is you have a central.

Storage and voter between three and five megawatts behind those and voters you have multiple different enclosures.

Speaker Change: So starting to manufacture of these 20 foot.

Which is building up your Asia cluster and you keep duplicating that as you want to build a larger.

Speaker Change: Battery enclosures some of our customers we work with refined they have msas with such suppliers, whether they'd like to use that and NV energy is a is a real good example of that.

Project.

Then you have products such as the Tesla Mega pack and some girl Titan.

Speaker Change: Finally, looking at our portfolio.

Speaker Change: We often come across projects, where the customer has constraints around land or around four meeting. So the standard off the shelf available equipment is not able to fit the sites with the needs of the customer and they'll have a real good example of that.

Where it's still the same architecture, where the battery.

Is connected with the in voter you'll have a string of maverick connected with one single in border.

In both of these architectural you will notice the.

Power and energy is always coupled which means if.

I would like to add additional in border to get more power I always have to have additional batteries.

Speaker Change: Yeah.

Speaker Change: 2023 was a big execution year for US we delivered design built engineered.

Should we lose an inverter, we also lose the energy behind it and to overcome this issue what the industry does today.

As they add additional in voters, they're not able to optimize the capex. If I go sign up for a project with 90, 899% availability, which such architecture. There is a need to add additional in motors additional batteries the cost of the project goes up.

Speaker Change: Delivered these three projects.

Speaker Change: As you look across the.

Speaker Change: The charge that we've got the first picture for wellhead with just 68 megawatts in.

Speaker Change: And queso.

Speaker Change: One for NV energy 220 megawatts in Nevada.

The architecture that we have develop that energy world.

Speaker Change: Regulated utility the last one in ERCOT 100 megawatt 200 megawatt hours.

We have.

Decoupled power and energy have you broken the relation between them the.

Speaker Change: Different equipment different states different equipment different application.

Coupling between the power and the energy.

What happens in that architecture.

Speaker Change: The only thing that is able to tie them together is the integration of expertise from LNG world.

Is all of the batteries are always connected with all and voters, we use module or in voters, we don't juice drink into motors or the central storage in our AC volt, we use module and borders.

Speaker Change: The underlying integration and engineering expertise, which is how do we integrate that.

With a modular and voters all in voter always connected with all batteries. So if we lose an in voter.

Speaker Change: I'd give different.

Speaker Change: Technology into the application that the customers trying to solve for and the execution capability.

The battery is still available if you lose a battery that in voters still available.

Speaker Change: All of that is enabled by our World OS software platform, which we have.

This allows us by default to have a product.

Speaker Change: Okay section on later on today.

To have a project with a higher availability.

Speaker Change: Yeah.

Speaker Change: The <unk> battery energy storage product is.

Because should we lose and in voter we only lose a couple of hundred kilowatts. This allows us to also be very.

Speaker Change: Built around the D C as well as the ACR what options, we have a supply chain that we have established partnerships with in Asia again, we're not weighted prescriptive with the battery that gets integrated but rather we have a suite of different options that our customers can choose from based on that.

Optimizing the way we can size our projects, we don't have to always move in increments of multiple megawatts, we can move into smaller chunks, which means the cost of the project is.

Is is much more optimized.

Furthermore, as we look at augmentation.

Speaker Change: Needs of the project.

We are now starting to see in California projects moving from four hours. This six hours eight hours.

Speaker Change: The speed at which this product was built designed build certified.

Argumentation is very easy.

Speaker Change: This is fully.

To do the augmentation.

Speaker Change: Certified for you own 90, 540, as well as all the all the NFPA safety requirements and rebuilt.

We can simply moved these in voters into additional newer battery enclosures, because BRD decoupled weekend mixed batteries as well you can bring a different type of technologies because theyre not.

Speaker Change: Our first project in Oregon, using the exact product.

Speaker Change: The speed at which this was able to come together was possible because of the expertise of our team.

Coupled together.

Speaker Change: Yeah.

Speaker Change: We're onto the second generation of our product between the first generation and the the second one we've improved energy density by over 35%.

Supply chain is a big element of of of the battery energy storage industry.

The optionality that wed like to bring to our customers.

Speaker Change: And with that improvement we were also able to improve the cost dropped the cost of integration, excluding the batteries by about 25%.

We have the strategic partnerships with.

Speaker Change: Four main pillars as we.

With.

Manufacturing.

Speaker Change: Designed and build a product.

The lithium ion batteries over in Asia, both China as well as outside of China.

Speaker Change: Flexibility flexibility around.

Speaker Change: The architecture flexibility around the supply chain.

And finally, the contracting structure this is a.

Speaker Change: Second one is availability.

Important one BYOB, which is a bring your own battery.

Speaker Change: As we look at these more severe weather events energy storage system.

The NV energy I think is a really good example of this.

Speaker Change: Monetize as the maximum revenue around such peanuts, the price and the volatility in the air.

We are looking at customers, which have a particular MSA there are trying to bring to the table what theyre looking for integration partner somebody who understands how to design and build the energy energy storage system using that particular battery.

Speaker Change: Liquidity market is higher during such events.

Speaker Change: So the product that we've designed is able to function.

Speaker Change: At <unk>.

Speaker Change: Negative 40 C. All the way to 45 without taking any DRAM, it's able to function in higher seismic areas wind gust.

This is a.

A contracting mechanism also quite good.

Quite popular from the from the solar side, where the developers themselves provide with the solar modules, where they're looking for an EPC to do the full ramp.

Speaker Change: So the product is available to the customer and most importantly, which I will talk about this as not a me too product, but there was a unique feature which is the AC architecture.

There's a lot of momentum behind <unk>, and which is important to us and we would like to have our customers access to domestic content and wood that we made a strategic decision to invest into core power.

Speaker Change: On the supply chain flexibility, we saw the the three projects from last year first one is using NMC batteries from Samsung. The second one is using the BYD cubes, which was the LSP large format <unk> and finally the last one.

This is very important to us and lets hear from from a core power.

[music].

Speaker Change: Using.

Speaker Change: <unk> <unk> from <unk>.

Speaker Change: We have different.

Speaker Change: Batteries that can be easily integrated into the B world platform product.

$1 2 billion dollar of investment is going to create thousands of good manufacturing jobs, 90% of which don't require a college degree and that you get a good wage my name is Lindsey goral I'm, the founder and CEO of horsepower I was heavily involved in the supply chain of lithium batteries for number of years, how do I bring all the knowledge I have on lithium ion.

Speaker Change: Further we find customers that have already made interconnection obligations like I was in Australia last week, we are working with with the Asian that has logged in a politically in motor into the interconnection application.

Speaker Change: Such customers will require a solution that can work with that with.

Sales to the United States.

Mother nature provides energy when it wants to energy storage is a thing they will finally make green energy $20 seven so you've got all this money being spent on say solar in California, but people are seeing their energy costs and.

Speaker Change: With that very specific power electronics for them, we have the DC world option, which allows again integration of different type of batteries into that.

Speaker Change: Further to increase our energy density VR.

And that's a problem with storage brings a community is reliability, but also should be economics what are the.

Speaker Change: Develop being a stacking solution and this.

Main reasons why do you want to build batteries in United States themselves, even states as a supply chain from the upstream which is for minerals chemicals and on the balance sheet to companies like energy.

Speaker Change: This will instantly doubled the amount of energy density, which is possible into the into the projects.

With domestic manufacturing there is no issue with the Suez canal being shut down or something like that or backup containers. We can move our product to a job site in North America in two days.

Speaker Change: What's unique about our B world is the.

Speaker Change: The AC World architecture.

Speaker Change: If you look at the way most of the.

Speaker Change: Lithium ion battery storage is being built today is mostly around two separate architectures you have a D C. Walt architecture, which is you have a central.

Bought about 215 acres of land.

Buckeye, Arizona that plant will be up and running with cell production.

The early part of 2026, we're building something today and we're going to look back five years analysis of Holy Cow look what we did and whenever it would be part of that we want to make sure were tied to a company that we believe it because they are using our product energy goals is not only entered into a major auto agree with core but also made a significant early stage.

Speaker Change: Storage in voter between three and five megawatts behind those and voters you have multiple different enclosures.

Speaker Change: Which is building up your Asia cluster and you keep duplicating that as you want to build a larger.

Speaker Change: Project.

Speaker Change: Then you have products such as the Tesla Mega pack and some girl Titan.

Investment before.

We want to do is we want to support energy, we'll invest where we can number one we're going to build a high quality product with a very good price in North America supported by the infrastructure activity IRA So what IRA gives you.

Speaker Change: Where it's still the same architecture, where the battery.

Speaker Change: Is connected with the in voter you'll have a string of battery connected with one single in border.

Speaker Change: In both of these architectural you will notice the.

A company like core basically.

Speaker Change: Power and energy is always coupled which means if.

<unk> credit on production and then on top of that the products that we produce.

Speaker Change: I would like to add additional in border to get more power I always have to have additional batteries.

We are going to ship and make for energy goal date.

They can take a tax credit of 36% on top of that we can work with eligible development products for them.

Speaker Change: Should we lose an inverter, we also lose the energy behind it and to overcome this issue what the industry does today.

Bruce of cells and modules and energy storage box.

Speaker Change: As they add additional in voters, they're not able to optimize the capex. If I go sign up for a project with 90, 899% availability with such architecture. There is a need to add additional in motors additional batteries the cost of the project goes up.

Can build anything we want so we see something energy what was doing that we can help them do better and making when we want to do that.

We know we can produce a product that's going to make energy was successful and ineligible has a platform that will help us be successful.

Speaker Change: The architecture that we have develop that energy world.

Combination of CT energy will allows us to go after almost every type of story.

Speaker Change: We have.

Speaker Change: Decoupled power and energy have you broken the relation between them the coupling between the power and the energy.

To do everything themselves solutions due to development that got it.

Becomes a combination of resin.

Speaker Change: What happens in that architecture.

Speaker Change: Is all of the batteries are always connected with all and voters, we use module or in voters, we don't juice drink into motors or the central storage in our AC volt, we use module and borders.

[music].

Speaker Change: With a modular and voters all in voter always connected with all batteries. So if we lose an inverter.

The job is not done until the.

The electrons pathic loves the meter and our and our customers realize the.

Speaker Change: The battery is still available if you lose a battery that in voter still available.

The acceptance of the asset into the market I think that's why execution is very important to us we talked about the product we can build a great product but.

Speaker Change: This allows us by default to have a product to.

Speaker Change: To have a project with a higher availability.

Until the system is into the market that's when the customers start to realize the economic benefits.

Speaker Change: Because should we lose and in voter we only lose a couple of hundred kilowatts. This allows us to also be very.

Speaker Change: Optimizing the way we can size our projects, we don't have to always move in increments of multiple megawatts. We can move in smaller chunks, which means the cost of the project is.

We've built a great team around execution as I said.

My personal experience is over 100 projects, but everything we've built here with the team behind us.

Speaker Change: Is is much more optimized.

The software the hardware everything was built in the last 12 months. The first project that we turned on.

Speaker Change: Furthermore, as we look at augmentation as.

Speaker Change: Now starting to see in California projects moving from four hours six hours eight hours.

Wellhead, which was a first instance of our MFS was commissioned in less than two weeks. It was one of the fastest commissioning that.

Speaker Change: Argumentation is very easy.

Speaker Change: To do the augmentation.

Speaker Change: We can simply move these in voters into additional newer battery enclosures, because BRD decoupled weekend mixed batteries as well you can bring a different type of technologies because they're not.

We had seen in the <unk> region.

2023, where we delivered the projects.

Speaker Change: Coupled together.

The.

Gross margins were between five and 10%.

As we look at 2024 and 2025, we believe we will be in the double digit margin and how do we get there is by far the most important is the supply chain.

Speaker Change: Supply chain is a big element of of.

Speaker Change: Of the battery energy storage industry.

Speaker Change: The optionality that we'd like to bring to our customers.

Being able to have access to domestic content being able to have the strategic msas.

Speaker Change: We have the strategic partnerships with wood.

The second one is the is the unique product architecture than what I mentioned about our B world, which allows us to be very optimized with our systems.

Speaker Change: Manufacturing.

Speaker Change: Of the lithium ion batteries over in Asia, both China as well as outside of China.

System sizing, maybe you're able to go and execute projects, which are.

Speaker Change: And finally, the contracting structure this is a.

Speaker Change: Important one BYOB, which is a bring your own battery and again the NV energy I think is a really good example of this.

Much more cost competitive.

Finally, it's about the projects that we are looking at and we're not looking at a cookie cutter style projects, we're looking at portfolios.

Speaker Change: We are looking at customers, which have a particular MSA there are trying to bring to the table, where theyre looking for integration partner somebody who understands how to design and build LNG energy storage system using that particular battery.

Which the customer has a problem that they're trying to solve for and to be able to solve those issues being able to listen to the customer work around the country and so they have that requires us to be creative bring out solutions, which naturally.

Speaker Change: This is a.

Speaker Change: A contracting we got as I'm also quite.

Speaker Change: Quite popular from the from the solar side, where the developers themselves provide with the solar modules, where they're looking for an EPC to do the full ramp.

And higher margins.

To summarize our battery strategy number one not be prescriptive and.

Speaker Change: There's a lot of momentum behind <unk>, and which is important to us and we would like to have our customers access to domestic content and wood that we made a strategic decision to invest into core power.

Confined with a standard product, but rather have a platform which enables our customers.

To have the degrees of freedom and the flexibility to choose pick and choose solutions, which work for them.

Speaker Change: This is very important to us and lets hear from from core power.

Yeah.

The second one is.

Speaker Change: [music].

Focus on the economics focus on the problem that the customer is trying to solve for and work around a solution that enables that and finally, it's the execution.

With that we'll take the next few minutes for questions. Thank you. We've got time for a couple of questions from the audience.

Speaker Change: I was heavily involved in the supply chain of lithium batteries for number of years, how do I bring all the knowledge I have on lithium ion cells to United States.

Yeah.

Is there no questions, we'll move them okay.

Thank you Ajay.

Yeah.

Speaker Change: Mother nature provides energy when it wants to energy storage is a thing they will finally make green energy $20 seven so you've got all this money being spent on say solar in California, but people are seeing their energy costs go up and.

Okay I'd like to welcome on stage, so I saw a chance.

Right.

Tony Bill Baker, who is the consulting and ponderous, so and ultra Andrew.

Speaker Change: And that's a problem with storage brings a community is reliability, but also should be economics.

Jose.

From an NGO.

Speaker Change: What are the main reasons why do you want to build batteries in United States themselves, even states as a supply chain from the upstream which is for minerals to chemical and on the balance sheet to companies like energy.

Okay.

Yeah.

[noise].

Speaker Change: With domestic manufacturing there is no issue with the Suez Canal will be shut down or something like that or backup containers. We can move our product to a job site in North America and to date, we bought about 250 acres of land in Buckeye, Arizona that plant will be up and running with cell production.

Speaker Change: The early part of 2026, we're building something today and we look back five years analysis of Holy Cow look what we did and whenever it would be part of that we want to make sure were tied to a company that we believe it because they are using our product energy goals is not only entered into a major optic agree with core but also made a significant early stage of it.

Yes.

Speaker Change: Before we want to do is we want to support energy, we'll invest where we can.

[music].

Speaker Change: One we're going to build a high quality product with a very good price in North America supported by the infrastructure. The IRA So what IRA gives you.

Speaker Change: Just kind of like core basically a tax credit on production and then on top of that the products that we produce that we.

Speaker Change: We're going to shift and make for energy goals.

Great.

But were it to be back up here and.

Speaker Change: They can take a tax credit of 30, 50% on top of that we can work with eligible development drugs for them.

This is actually one of the most exciting things.

I've been a part of and to be able to talk about there today and announce it here today.

Speaker Change: Because we produce a cells modules and energy storage box, we can build anything we want so we see something energy was doing that we can help them do better and making when we want to do that.

Have bill Baker up here with me.

S O N.

Who's really needs no introduction from a global perspective and things. He has done you can read.

Speaker Change: We know we can produce a product that's going to make energy was successful.

They're above some of the superstructures Bill has designed and Architected, all steel sanding and I'll still doing well.

Speaker Change: <unk> has a platform that will help us be successful the combination of forward energy will allows us to go after almost every type of story.

By all accounts.

And.

And just amazing I think because of the things that we're taking on and gravity and the types of structures that you know the 150 meter structure in China getting built for our <unk> system.

Speaker Change: Do everything themselves solutions due to development that guys.

Speaker Change: It becomes a combinations of drugs.

But actually really opening our eyes to the art of the possible what can be done in superstructures.

And as you all are probably aware to make gravity work higher is better.

Speaker Change: The job is not done until.

Speaker Change: The electrons pathic loves the meter and our and our customers realize the the.

It's better for economics, it's better for energy density.

And you look at some of the structures and think about these designs and how how does that withstand the elements.

Speaker Change: The acceptance of the asset into the market I think that's why executions that are important to us we talked about the product we can build a great product, but until the system is into the market. That's when the customers start to realize the economic benefits.

How does that withstand wind.

Hurricanes things like this in the zone. So very excited on that and also Dr Jose and dry.

Here who's been working with the energy from the very beginning with idea lab.

Speaker Change: We've built a great team around execution as I said my my personal experiences over 100 projects, but everything we've built here.

Dr <unk>.

Very well known in the areas of civil and mechanical engineering the chair at Caltech.

Speaker Change: The team behind Us.

Pasadena, there in southern California also.

Speaker Change: The software the hardware everything was built in the last 12 months.

In their seismic studies, which I think Caltech, probably one of the best in the World, given California and generally looking at.

Speaker Change: First project that we turned on.

Speaker Change: Wellhead, which was a first instance of our MFS.

How.

How to make our structure is more safe so very excited to have both of you here and.

Speaker Change: Was commissioned in less than two weeks. It was one of the fastest commissioning that.

Maybe bill I'll start with you and.

Speaker Change: That we had seen in the queso region.

We've gotten to know each other here a little bit and I know actually through meeting Jose and being a part of some forms with him got you interested here in entry vault, but would love to maybe just by a little bit of introduction of what you've been doing with with S. O N and then.

Speaker Change: 2023, where we delivered the projects.

Speaker Change: <unk>.

Speaker Change: Gross margins were between five and 10%.

Sort of the why behind and the interest in working with energy ball well you know I've been with <unk> since 1981, so over 40 years.

Speaker Change: As we look at 2024 and 2025, we believe we will be in the double digit margin and how do we get there is by first and most important is the supply chain.

And that's what I'm <unk>.

Uniquely a unique architectural engineering firm because we have all the architects and engineers inside the same.

Speaker Change: Being able to have access to domestic content being able to have the strategic msas.

The same firm and we've been doing tall buildings ever.

Speaker Change: The second one is the is the unique product architecture than what I mentioned about our B world, which allows us to be very optimized with our.

Ever since even before I became a we did.

In the 19 sixties, we did the world's tallest building built in 19 sixties tourist brothers built over decades of the seventies. He had the tallest building that was built in the decade of the <unk>.

Speaker Change: System sizing, maybe you're able to go and execute projects, which are.

Speaker Change: Much more cost competitive.

And then of course in 'twenty.

Speaker Change: Finally, it's about the projects that we are looking at we're not looking at a cookie cutter style projects, we're looking at portfolios.

'twenty churn, we had the birch Khalifa.

Go up and so youre British claimants over half mile tall, and so we have there's integration of architecture engineering, where we can do it all but we're also in the middle of an energy crisis.

Speaker Change: Which the customer has a problem that they're trying to solve for and to be able to solve those issues being able to listen to the customer work around the country and so they have that requires us to be creative bring out solutions, which naturally.

The environmental crisis.

And in my World of architecture and engineering.

We know that 40% of the carbon in the world comes from our buildings users to the construction or the operations. So the hottest topic in architecture is how do you deal how do you build in a sustainable way.

Speaker Change: And higher margins.

Speaker Change: To summarize our battery strategy number one not be prescriptive and.

Speaker Change: Confined with a standard product, but rather have a platform which enables our customers.

There is a huge organization going on.

Yeah.

<unk> Chan half.

For the first time half the people in the world lived in cities.

Speaker Change: To have the degrees of freedom and the flexibility to choose pick and choose solutions, which work for them.

And we're on our way going from.

Or are we going from here.

8 billion people in the world too.

Speaker Change: The second one is.

Speaker Change: Focus on the economics focus on the problem that the customers trying to solve for and working on a solution that enables that and finally, it's the execution.

Youre going to be up to 10 billion people in the world in the not too distant future and so.

All of this stuff has to get built and there's two kinds of carbon that we were very much about which is our operational carbon the carbon it takes to run the buildings and his body carbon the carbon it takes to build the buildings.

Speaker Change: With that we'll take the next few minutes for questions. Thank you. We've got time for a couple of questions from the audience.

And so yes.

Speaker Change: Yeah.

Andre.

Speaker Change: It's a no questions, we'll move them okay.

Jose.

Caltech.

Some lectures there and they got me involved in and we got very very very excited about the technology.

Speaker Change: Thank you Akshay.

Speaker Change: Yeah.

Speaker Change: Okay I'd like to welcome on stage, so I saw a chance.

Energy vault was.

Was it was trading because we saw it as a huge opportunity to address both of those issues.

Akshay Ludwig: Thanks, Tony.

Speaker Change: Tony Bill Baker, who is the consulting and ponderous, so and dose.

I tell you all the young architects engineers, they all want to work on this project.

Speaker Change: Jose.

All of my partners at Skidmore are all over this thing will look for ways to ways to do this to bring us into the built environment.

Speaker Change: From an NGO.

Speaker Change: Okay.

As either individual batteries, just standalone batteries are.

Speaker Change: [noise].

Higher is better okay.

All of them yourself this has potential energy.

Alright, I've stored energy by.

So of solar.

Pulling it off the ground stored energy if I storage twice as high twice the energy by go 10 times as high 10 times energy. So height makes a big difference. It makes a big difference in the energy that we that we can store and the efficiency. So.

Speaker Change: Yes.

That's.

Yes.

Speaker Change: Yes.

We're all going and excited about great well, thanks for sharing that.

Speaker Change: Yes.

Maybe I can ask you you've been involved in energy are all really since the beginning and.

When we met and as we chose to create a company and looking at gravity initially as we looked at the long duration storage market.

Speaker Change: [music].

The thesis behind.

As renewables become a greater part of the grid that introduces more intermittency and therefore as that percentage goes up the need for long duration storage, but talk a little bit about your journey with energy vote, and then come back to how.

Bill and why that's let's say interesting exciting for you on that in this combination.

Speaker Change: Great.

Speaker Change: But were it to be back up here and.

Speaker Change: This is actually one of the most exciting things.

So I'll be happy to do that so yes, you said, Rob I've been with <unk> since 2017, and the concept really captivated me because back at that time, we were looking at E V. One right. This idea of moving this.

Speaker Change: I've been a part of and to be able to talk about there today and announce it here today.

Speaker Change: Bill Baker up here with me from S O N.

Bill Baker: Who's really needs no introduction from a global perspective and things you've done you can read.

Masses up and stacking them up to create potential energy the kind of energy that Bill just described right and yes, Hi. This is your friend and so I've been interested in seismic studies of complex systems and this was a very complex. This continuous problem that happened to have the potential for.

Bill Baker: They are above some of the superstructures Bill has designed and Architected, all steel sanding and I'll still doing well.

Bill Baker: By all accounts.

Bill Baker: And.

Bill Baker: Just amazing I think because of the things that we're taking on and gravity and the types of structures that you know the 150 meters structure in China getting billed for our first system.

Energy storage, so I fell in love with the project right off the bat met Rob met and drill pads ready and just started to simulate the model the system side to try and understand the mechanics, there behavior and in that path and that journey <unk> came along and the challenge there for that product was too.

Bill Baker: But actually really opening our eyes to the art of the possible what can be done in superstructures.

Bill Baker: And as you all are probably aware to make gravity work higher is better.

Bill Baker: It's better for economics, it's better for energy density.

Optimize construction create new materials that we could deploy faster cheaper better for customers right and then we did tremendous work there and tremendous innovation that we're very proud of it and we see the results in China.

Bill Baker: And you look at some of the structures and think about these designs and how how does that withstand the elements.

Bill Baker: How does that withstand wind.

Bill Baker: Hurricanes things like this in these zones. So very excited on that and also Dr Jose and dry.

And.

But <unk> is a 150 meter tool structure and it has some.

Bill Baker: Here who's been working with the energy out from the very beginning with idea lab.

Some degree of ability to store energy, but if you could go taller and you know when you look around here in Manhattan, you have plenty of inspiration right theres plenty of total structures.

Speaker Change: Dr <unk>.

Joseph Amil Osha: Very well known in the areas of civil and mechanical engineering the chair at Caltech.

Joseph Amil Osha: Pasadena, there in southern California also.

So to think that there is something that you can do beyond an AVX beyond 150 meters you could reach much higher altitude and you could kill two birds with one stone.

Bill Baker: In their seismic studies, which I think Caltech, probably one of the best in the World, given California and generally looking at.

Bill Baker: How.

Bill Baker: How to make our structure is more safe so very excited to have both of you here and.

By bringing storage where demand is because the bulk of the demand as bill said as we migrate to cities is coming from cities.

Bill Baker: Maybe bill I'll start with you and.

And so that is the journey and when we started to think about going toller, becoming more effective and efficient a new bill from 10 years ago. He had come to cause that to give a lecture and we hit it off and so the first person I called when we thought about going polar was bill Baker.

Bill Baker: We've gotten to know each other here a little bit and I know actually through meeting Jose and being a part of some forms with him got you interested here in N revolt, but would love to maybe just a little bit of introduction of what you've been doing with them with S. O N and then.

Speaker Change: Sort of the why behind and the interest in working with energy wall, well, you know ive been a reversal am since 1981, so over 40 years.

Another of the tallest building in the world.

It's exciting.

Speaker Change: And that's what I'm <unk>.

In this collaboration what what I've seen and you have a.

Speaker Change: Uniquely a unique architectural engineering firm because we have all the architects and engineers inside the same.

A firm Skidmore, Owens and Bill Baker and solve that.

Speaker Change: The same firm and we've been doing tall buildings.

Build structures he said since the sixties the tallest structures in the world.

Speaker Change: Ever since even before I became a we did in.

Speaker Change: In the 19 sixties, we did the world's tallest building built in 19 sixties, we'd still tell us brothers bolt on of a decade of the seventies.

And the integration of the technology that we've developed.

Combined with that practicality of what it takes to build and permit these structures, where the economics get crazy when you get to the.

Speaker Change: Had the tallest building that was built in the decade of the eighties.

Speaker Change: And then of course.

300, 400 500 meter.

Speaker Change: And 'twenty churn, we had the birch Khalifa.

And bill coming back to you I guess on <unk> question. We we've designed for example, a structure of a 1000 meters one kilometer tall.

Speaker Change: Go up and so youre basically if it's over half mile tall, and so we have there's integration of architecture engineering, well, where we can do it all but we're also in the middle of an energy crisis.

For certain parts of the world and looked at different integrations of both our block technology in a modular pumped hydro using water technology.

Speaker Change: The environmental crisis.

Talk to me a bit about carbon payback.

Speaker Change: And in my World of architecture and engineering.

And how you in first traditionally in these structures like the <unk> Clipper was or even one and then as you look at looking at our block technology and then maybe the hydro type of technology in that one kilometers structure to talk a little bit about <unk>.

Speaker Change: We know that 40% of the carbon in the world comes from our buildings users to the construction or the operations. So the hottest topic in architecture is how do you deal how do you build in a sustainable way Theres a huge organization going on.

How carbon payback works what's what's.

Speaker Change: And 'twenty Chan half.

In the World of architecture engineering, we need to build these things, but we feel bad because we're creating a carbon problem in the process.

Speaker Change: For the first time half the people in the world lived in cities.

Speaker Change: And we're on our way going from.

As there is no carbon payback on an office building or residential sky screamer.

Speaker Change: Or are we going from.

Speaker Change: 8 billion people in the world too.

You have to spend carbon to build them.

Speaker Change: All the way up to 10 billion people in the world in the not too distant future.

And so so so.

This deficit that we have to deal with.

Speaker Change: So all of this stuff has to get built and there's two kinds of carpet that we were very much about which is our operational carbon the carbon it takes to run the buildings and his body carbon the carbon it takes to build the buildings.

But so here's this opportunity to do this.

So a very tall structure. So structure did you build locally it will never catch on fire.

Alright.

You can be denser in a downtown.

Speaker Change: And so.

Speaker Change: Andre.

Our location.

Speaker Change: Jose.

They will last for a long time, there or hunter erode skyscrapers in this town.

Speaker Change: Caltech.

Speaker Change: Some lectures there you got me involved in and we got very very very excited about the technology that.

The Woolworth building just down the street here is over 100 years old.

For sapiens as soon it could be 100 years old. These structures, if you maintain them last essentially forever.

Speaker Change: Energy vault was.

Speaker Change: When <unk> was trading because we saw it as a huge opportunity to address both of those issues.

So so we're looking at these working with Jose where we're looking at these stores.

Speaker Change: I tell you all the young architects engineers, they all want to work on this project.

Get up to a kilometer.

Speaker Change: All of my partners at Skidmore are all over this thing will look for ways to ways to do this to bring us into the built environment.

Tower sort store away over a gig a gigawatt hour of energy.

And the carbon payback is between two and four years.

Speaker Change: As either individual batteries, just standalone batteries.

Think about that you can do such a massive structure with the carbon offsetting.

Speaker Change: Higher is better okay.

Speaker Change: All of them yourself this has potential energy.

Its pay for it all.

Speaker Change: Alright, I've stored energy by.

The structure, so it's actually kind of around two years.

Speaker Change: So I'm a solar.

Speaker Change: Pulled it off the ground I've I've stored energy, if I store twice as high twice the energy.

Yeah just.

This is the work we have a sustainable engineering group in the office and so they ran the couch on there you know how much embodied carbon.

Speaker Change: 10 times as high 10 times energy so height makes a big difference it makes a big difference in the energy that we that we can store and the efficiency. So.

And the concrete in the rebar and Theres, some little bit of steel, but not much.

And so then what is the how.

Speaker Change: Yes.

Speaker Change: That's where we're going and excited about great well, thanks for sharing that.

Every day, you can fully charge and fully discharges battery.

Speaker Change: Maybe I can ask you you've been involved in energy are all really since the beginning and.

No.

So how many cycles do you do it because right.

Right now my understanding this is not my role to zero batteries are generally used as a transition.

Speaker Change: When we met and as we chose to create a company and looking at gravity initially as we looked at the long duration storage market.

The duck curve or whatever that is.

But at night, all the energy is false or fuel or most of it Paul so fuel and if we're really going to go sustainable.

Speaker Change: Thesis behind.

Speaker Change: As renewables become a greater part of the grid that introduces more intermittency and therefore as that percentage goes up the need for long duration storage, but talk a little bit about your journey with energy vote, and then come back to how.

And where people live.

On renewable energy, you've got a store enough to carriers through the night.

Speaker Change: Bill and why that's let's say interesting exciting for you on that in this combination.

And just this is.

If you assume that there's like 30 kilowatt hours per household in the U S. Okay and you have.

Speaker Change: Yeah, So I'll be happy to do that so yes, you said, Rob I've been with energy Board since 2017, and the concept really captivated me because back at that time, we were looking at E V. One right. This idea of moving this.

I'm sorry half of its during the daytime gear from solar and another half for me from a battery.

A gigawatt hour battery could take 60 to 70000 households.

Speaker Change: Masses up and stocking them up to create potential energy the kind of energy that Bill just described right. Yes, Hi. This is your friend and so I've been interested in seismic studies of complex systems and this was a very complex. This continuous problem that happened to have the potential for.

Also fossil fuel which is huge.

Cities.

If one were strategic about this yeah, yeah the potentials amazing.

Very excited about making that a reality one last question for you.

A lot of people to the general public than general I and private other people in the room when they think about a building 1000 meters tall mhm.

Speaker Change: For energy storage, so I fell in love with the project right off the bat met Rob met and drab Pedretti and just started to simulate the model the system, sorry to try and understand the mechanics, there behavior and in that path and that journey VX came along and the challenge there for that product was too.

The vertical if it was 820.

I know you said, we can go to 500.

You're uniquely can say that bill.

But in 1000 meter building what.

People think about generally like wind and these things, especially at that height and this structure one of the ones that we've been working on actually the cylinder cylindrical shape. How does that work what why is that the best shape. For example that heightened with explain just a little bit for the lay person yeah.

Speaker Change: Optimize construction create new materials that we could deploy faster cheaper better for customers and then we did tremendous work there and tremendous innovation that we're very proud of it and we see the results in China.

Speaker Change: And.

How how can you build a desktop and how can you support whether it's our hydro our modular pumped hydro water solutions interesting, where even the box how does that work well I mean, it's very stable shape.

Speaker Change: But <unk> is 150 meter toll structure and it has some.

Speaker Change: Some degree of ability to store energy, but if you could go taller and you know when you look around here in Manhattan, you have plenty of inspiration right that there is plenty of total structures.

We're quite interesting about this whole technology, yes, you have a lot of weight very high in the air. So that's what we're trying to do is try to put a lot of weight and very high there.

Speaker Change: So to think that there is something that you can do beyond an AVX beyond 150 meters you could reach much higher altitude and you could kill two birds with one stone.

And but in the process of that it helps you proportionately the structure that is very stable and the advantage of our cylinder is that is it.

Speaker Change: By bringing storage where demand is because the bulk of the demand as bill said as we migrate to cities is coming from cities and.

It's it's really robust and stuff and we're actually seeing that theres very very little ones.

In some cases no premium for wind load.

Speaker Change: So that is the journey and when we started to think about going tuller, becoming more effective and efficient.

Or minor seismic.

The structure you need to hold up the weight, if it's properly configure and easily built.

Speaker Change: New Bill from 10 years ago, he had come to cause that to give us a lecture and we hit it off and so the first person I called when we thought about going Tullow is bill Baker the father of the tallest building in the world Yeah, Yeah Yeah.

One of the reasons that are the worst place got built is because we designed it for how it is going to be built.

In the construction technologies that we're looking at.

Jose totally conventional.

All right well very fast easily done.

Speaker Change: Yeah, it's exciting.

Anywhere in the world.

Speaker Change: I think in this collaboration what.

Uh huh.

<unk>.

Speaker Change: What I've seen and you have.

It can be both quickly and efficiently and there's almost like a moral obligation to do this.

Speaker Change: Our firm Skidmore, Owens and Bill Baker himself that have built structures. He said since the sixties the tallest structures in the world.

Because if you could start.

A few years, we can build.

Speaker Change: And the integration of the technology that we've developed.

One of these things that can take those people off the grid of the fossil fuel grid.

Speaker Change: Combined with that practicality of what it takes to build and permit the structures, where the economics get crazy when you get to the.

Tremendous so if we don't the sooner we do it.

The sooner we can start having people completely on.

Speaker Change: 300, 400 500 meter.

Renewable energy will look moving from moral obligation or moral imperative, let's say to mandate and just to put this.

Speaker Change: And and Bill coming back to you I just had a question. We we've designed for example, a structure of 1000 meters one kilometer tall.

And perspective for investors, so what does it mean.

Speaker Change: For certain parts of the world and looked at different integrations of both our block technology in a modular pumped hydro using water technology.

First of all we have a segment of the market.

In terms of the building of superstructures in dense locations, where theres a lot of energy ma'am to new York's a great example.

Bill: Talk to me a bit about carbon payback.

Speaker Change: And how you in first traditionally in these structures like the Bruce Khalifa, but was or even one and then as you look at looking at our block technology and then maybe the hydro type of technology in that one kilometers structure to talk a little bit about <unk>.

To hear a stat with you that I learned yesterday by visiting a skip our office.

Every month.

Up to 2060, which.

As long as that I mean, it doesn't make sense going past that.

That.

And the world, we're going to build.

Speaker Change: Carbon payback works so what's what's.

What is the equivalent of New York City ever.

Speaker Change: In the World of our church engineering, we need to build these things, but we feel bad because we're creating a carbon problem in the process.

Every month and structures.

So you think about doing that across the world and that massive build.

Speaker Change: So there is no carbon payback on an office building or residential skyscraper.

And as of now people thinking about that traditionally you heard bill talk about it's not only carbon footprint. When you use a building its carbon footprint just in the <unk>.

Speaker Change: You have to spend carbon to build them.

Speaker Change: And so so so are we.

Speaker Change: Have those this deficit that we have to deal with.

What you build infrastructure.

And the structure itself.

Speaker Change: But so here's this opportunity to do this.

Moving from moral imperative to mandate here, given what's happening in the world with the heating up the planet and things.

Speaker Change: So a very tall structure. So structure did you build locally it will never catch on fire.

Speaker Change: Alright.

Speaker Change: You can be denser in a downtown.

It's clear to me that there are going to be changes countries have already for example in energy storage China's done it they mandated 20% at power for every renewable asset that gets built.

Speaker Change: Location.

Speaker Change: They will last for a long time, they're a 100 year old skyscrapers in this town.

Speaker Change: Okay.

Speaker Change: All worth building just down the street here is over 100 years old the Empire State building as soon as can be 100 years old. These structures you could maintain them last essentially forever.

I envision a world, where there will be changes in permitting and policy relative to ensuring there's integration of more sustainable.

Speaker Change: So so we're looking at these working with Jose we're looking at these stores.

Aspects of the building itself integration of either how buildings are powered how they're using in those technologies.

Speaker Change: Get up to a kilometer.

Speaker Change: Tower sort store away over a jigger, a gigawatt hour of energy.

Using software to make for example, HVAC systems operate more efficiently through using AI, but in our building materials itself and.

Speaker Change: And the carbon payback is between two and four years.

Speaker Change: Think about that you can do such a massive structure with the carbon offsetting.

For example.

Carbon sequestration in the in those building materials and absorbing carbon.

Speaker Change: Its pay for it.

That we're involved with a lot of research with that so it's a it's a.

Speaker Change: The structure, so it's actually kind of around two years.

From our perspective as a company we feel the imperative as we're building things with gravity as you build these out and even in all of our energy solutions, we're building because everything needs a foundation.

Speaker Change: Yeah.

Speaker Change: <unk>.

Speaker Change: This is the work we have a sustainable engineering group in the office and so they ran the couch on there you know how much embodied carbon is.

Speaker Change: Concrete and rebar and Theres, some little bit of steel, but not much.

It really behooves us to ensure its done sustainably.

But we believe from an investment thesis perspective, this is going to be a requirement.

Speaker Change: And so then what is the.

Speaker Change: And then you every day, you can fully charge and fully discharges battery.

As is our culture, we're getting in front of us.

Speaker Change: And so how many cycles do you do it.

We believe we bring a lot of technology and a lot of ability to leverage.

Speaker Change: Right now my understanding this is not my role this year world batteries are generally used as a transition.

How we think about leveraging materials science and structural and civil engineering, just like with our gravity system that came together with those two things plus AI software to create an energy storage breakthrough I think it's going to be the same here and very excited about the partnership.

Speaker Change: The duck curve or whatever that is.

Speaker Change: But at night, all the energy is fossil fuel or most of it Paul so fuel and if we're really going to go sustainable.

Speaker Change: And where people live.

Adam Scott a lot of the partners that I know it couldnt be are there to partner meeting upstate.

Speaker Change: On renewable energy, you've got a store and enough to carriers through the night.

Speaker Change: And just this is.

But very excited about pulling that together.

Speaker Change: If you assume that there's like 30 kilowatt hours per household in the U S. Okay and you have.

And we see this changing architecture.

Because if you're going to build a building of disposal building for occupancy and it's gonna be a battery.

Speaker Change: I'm sorry half of its during the daytime gift from solar and another half from a battery.

You want them both to grow tall with huge organizations as Manhattan every month.

Speaker Change: A a gigawatt hour battery could take 60 to 70000 households.

I think it was going to have a big change in the energy World, but also a big change in architecture, well. Thank you Bill and Jose and everyone will be seen an announcement about our partnership. It is exclusive so I mean, it is something we're going to do together for the world you've seen the footprint of the buildings.

Speaker Change: Also fossil fuel which is huge.

Speaker Change: All cities.

Speaker Change: If one were strategic about this yeah, yeah, the potentials are amazing.

Speaker Change: Very excited about making that a reality one last question for you.

Carta, and China I had a list of 15 of them that I looked at before going there, but literally every region of the world.

Speaker Change: A lot of people to the general public than general eye, and probably a lot of people in the room when they think about building a thousand meters tall mhm.

And excited given that coexistence, we're going to have an and innovating together there. So thank you Bill and Jose. Thank you. Thank you I think we have a video we're going to play here.

Speaker Change: <unk> was 820.

Speaker Change: I know you said, we can go to 500.

Speaker Change: You're uniquely can say that bill.

We have actually before the grilling.

Speaker Change: But in 1000 meter building, what I mean.

I think it should be up.

Speaker Change: People think about generally like wind and these things, especially at that height and this structure one of the ones that we've been working on actually the cylinder cylindrical shape. How does that work what why is that the best shape. For example that heightened what explain just a little bit for the lay person yeah.

Yeah.

[music].

Speaker Change: How can you build it that tall and how can you support whether it's our hydro our modular pumped hydro water solutions interesting, where even the box how does that work I mean, it's very stable shape.

Speaker Change: We're quite interesting about this whole technology, yes, you have a lot of weight very high in the air. So that's what you're trying to put a lot of weight very high there.

Speaker Change: And but in the process of that it helps you proportionately the structure that is very very stable and the advantage of our cylinder.

Speaker Change: Is that it's it's it's really robust and stuff.

Speaker Change: And we're actually seeing that theres very very little ones.

Speaker Change: In some cases no premium for wind load.

Speaker Change: For our minor seismic.

Speaker Change: Because of our structure you need to hold up the weight, if it's properly configure and easily built I mean, they're one of the reasons that virtually forgot built is because we designed it for how it is going to be built in the construction technologies that we're looking at with Jose totally conventional.

Speaker Change: Well very fast easily done.

Speaker Change: Anywhere in the world.

Speaker Change: It can be both quickly and efficiently and there's almost like a moral obligation to do this.

Speaker Change: Because if you could start.

Speaker Change: A few years, we could build one of these things that can take those people off of the parcel fuel grid.

Speaker Change: Tremendous so if we don't the sooner we do it.

Speaker Change: The sooner we can start having people completely yeah on renewable energy.

Speaker Change: We will look at moving from moral obligation or moral imperative, let's say to mandate and just to put this.

Speaker Change: And perspective for investors, so what does it mean.

Speaker Change: First of all we have a segment of the market.

Okay.

Speaker Change: In terms of the building of superstructures in dense locations, where there's a lot of energy ma'am to new York's a great example.

[music].

Speaker Change: To hear a stat with you that I learned yesterday by visiting.

Speaker Change: Get more office.

Speaker Change: Every month.

Speaker Change: Up to 2060, which.

Speaker Change: As long as it doesn't make sense going past that.

Speaker Change: In the world, we're going to build.

Great.

With that in that the glimpse of the future there, let me call up Marco <unk>.

Speaker Change: What is the equivalent of New York City.

Speaker Change: Every month and structures.

Our chief product and commercial because they'll join us after the 10 minute break I see yeah. We're just going to go for 10 minute break.

Speaker Change: So you think about doing that across the world and that massive build.

Speaker Change: And as of now people thinking about that traditionally you heard bill talk about it's not only carbon footprint. When you use a building its carbon footprint just in the <unk>.

We will keep the 10 minutes. So if you can be back in the room. Please that would be where are you in agreement I know here. We're good no Q&A here right.

Okay. Okay cool, Okay, we'll take a little break everyone.

Speaker Change: What you build.

Speaker Change: And the structure itself.

Speaker Change: Moving from <unk>.

Speaker Change: Oral imperative to mandate here, given what's happening in the world with the heating up the planet and things.

Speaker Change: It's clear to me that there are going to be changes countries have already for example in energy storage China's done it they mandated 20% at power per every renewable asset that gets built.

Speaker Change: I envision a world, where there will be changes in permitting and policy relative to ensuring there's integration of more sustainable.

Speaker Change: Aspects of the building itself integration of either how buildings are powered how they're using and Theres technologies.

Speaker Change: Using software to make for example, HVAC systems operate more efficiently through using AI, but in our building materials itself and for.

Speaker Change: For example.

Speaker Change: Our carbon sequestration in the in those building materials and absorbing carbon.

Speaker Change: That we're involved with a lot of research with that so it's a it's a.

Speaker Change: From our perspective as a company we feel the imperative as we're building things with gravity as you build these out and even in all of our energy solutions, we're building because everything needs a foundation.

Speaker Change: It really behooves us to ensure its done sustainably.

Speaker Change: But we believe from an investment thesis perspective, this is going to be a requirement.

Speaker Change: As is our culture, we're getting in front of us.

Speaker Change: We believe we bring a lot of technology and have a lot of ability to leverage how we think about leveraging materials science and structural and civil engineering, just like where their gravity system that came together with those two things plus AI software to create an energy storage breakthrough.

Speaker Change: I think it's going to be the same here.

Speaker Change: And very excited about the partnership.

Speaker Change: Adam Scott a lot of the partners that I know it couldnt be are there to partner meeting upstate.

Speaker Change: Very excited about pulling that together.

Speaker Change: We see this changing architecture.

Speaker Change: Because if you're going to build a building of disposal building for occupancy and it's gonna be a battery.

Speaker Change: You want them both to grow tall with huge organizations as Manhattan every month.

Speaker Change: I think it was going to have a big change in the energy World, but also a big change in architecture, well. Thank you Bill and Jose and everyone will be seen an announcement about our partnership. It is exclusive so I mean, it is something we're going to do together for the world you've seen the footprint of the buildings.

Speaker Change: Carta, and China, I know I had the list of 15 of them that I looked at before going there, but literally every region of the world.

Speaker Change: And excited given that co existence, we're going to have an and innovating together there. So thank you Bill and Jose. Thank you. Thank you I think we have a video we're going to play here.

Speaker Change: Yes, we have.

Speaker Change: Actually before the grilling.

Speaker Change: I think it shouldn't be up.

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Sure.

Speaker Change: [music].

Speaker Change: Great.

Speaker Change: Okay with that and that glimpse of the future there let me call it Marco <unk>.

Speaker Change: Our.

Speaker Change: Chief product and commercial Aqua they'll join us after the 10 minute break I see yes.

Speaker Change: We're just going to go for 10 minute break.

Speaker Change: We will keep the 10 minutes. So if you can be back in the room, please that'd be great or even angry M&A now here. We're good no Q&A here right. Okay. Okay cool, Okay, we will take a little break everyone.

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